Diesel oil price increase will affect more industries

State owned oil and gas company Pertamina has increased the price of the diesel oil for certain industries to Rp 4,700 per liter from Rp 2,200 previously in a bid to reduce the government's fuel subsidy, Koran Tempo reported on Tuesday.

Pertamina's marketing and commercial director, Ari Sumartono, said in Jakarta on Monday that the new price will affect the diesel oil sold to mining, oil and gas industries and export-oriented companies, beginning early last week.

Beginning August, the price increase would also cover the diesel oil sold to other industries. "We are still considering the types of industries which would be required to buy diesel oil at the new price," he was quoted as saying.

Ari said that the price increase was made under the guideline of the Presidential decree No: 90/2002 which allows Pertamina to increase the fuel price according to fuel price fluctuation in the world's oil market.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Monday that he supported the price increase. "It would be no problem for Pertamina to increase the price of the diesel oil as long as the price increase is made according to the existing regulation," he said.

Prior to the increase, the diesel oil sold to industries was sold at Rp 2,200 per liter. The price of diesel oil sold at fuel stations remains at Rp 2,100 per litter despite the increase in the price of diesel oil for industries. (*)