Biodiesel reference price set 1.89% higher in December
Monday, December 7 2020 - 08:47 PM WIB
The reference price (or also known as HIP) of biodiesel for the month of December 2020 has been set at Rp9,505 per liter, 1.89% percent higher than the reference price in November at Rp9,329 per liter, the Ministry of Energy and Mineral Resources said on Monday (07/12).
The biodiesel price is in accordance with the decree of the MEMR Number 3034K/12/MEM/2016 on biofuel reference price to be mixed with fossil fuel.
"The price excludes the transportation costs for each hand-over spots," said the Head of Bureau for Communication and Public Communication Services at the MEMR Agung Pribadi said in Jakarta on Friday (04/12).
The above biodiesel reference price (HIP) becomes effective from Dec. 1, 2020, until the end of the month.
Read also : Ministry sets biofuel reference price for November
The reference price is set based on a certain formula, which takes into account the cost of the conversion of crude palm oil (CPO) into biodiesel at US$85/MT with a conversion factor of 870 kg/m3 as regulated by Minister of EMR Decree Number 182K/10/MEM/2020 which was issued last September.
The rupiah was assumed at Rp14.357/USD in calculating the above figures.
As for the average CPO price of Kharisma Marketing Bersama (KPB) during the period Oct. 25 to Nov. 24, 2020, it was set at Rp9,705/kg.
Editing by Roffie Kurniawan