Aviation fuel price to be evaluated every two weeks

State-owned oil and gas company PT Pertamina will adjust the price of aviation fuel (Avtur) every two weeks rather than once a month.

The new policy comes in response to the complaint from the association of the Indonesian airlines (Inaca) that the current once-a-month evaluation of the fuel price has made a long delay in the adjustment of the domestic price to the fall in international price, Kontan reported on Saturday.

The agreement was reached during a meeting between representatives of the association and senior officials of Pertamina in Jakarta on Thursday, Transportation Minister Jusman Syafli Djamal said on Friday.

The Avtur price has showed a downward trend since September this year. At the Soekarno-Hatta airport, the Avtur price which fell to Rp 10,021 per liter in September dropped further to Rp 9,042 per liter on Oct.1, to Rp 7,623 per liter in Nov.1, and to Rp 7,282 per liter on Dec.1.

At present, the domestic price of the Avtur is pegged to the international price reference set by Mid Oil Platts Singapore (MOPS). (*)