Ministry sets higher reference price for biodiesel
Tuesday, September 3 2019 - 03:34 PM WIB
The Directorate General for New and Renewable Energy at the Ministry of Energy and Mineral Resources (MEMR) has set biodiesel reference price (HIP BBN) for September 2019 at Rp6,929 per liter and bio-ethanol at Rp10,091 per litre.
The biodiesel price was higher compared to Rp6,795 per litre in the previous month, while bio-ethanol price was lower compared to Rp10,200 per liter.
The ministry said in a statement that the new reference price was effective as of September 1.
"The price of biodiesel increased by Rp134 per litre from the previous month," said the Head of Communication Bureau at the Energy and Mineral Resources Ministry (MEMR), Agung Pribadi.
The increased price of biodiesel was due to a rise of the average crude palm oil (CPO) set by the Joint Marketing Agency (KPB) at Rp6,556 per kg, compared to Rp6,394 per kg in the previous month.
HIP BBN is set as a reference price for the government agencies to purchase biodiesel from producers as an implementation of the B-20 program.
The biodiesel reference price is set based on certain formula that takes into account the CPO price as well as the rupiah exchange rate.
Editing by Roffie Kurniawan