Ministry sets lower reference price for bio-diesel in November
Monday, November 4 2019 - 06:49 PM WIB
The Directorate General for New and Renewable Energy at the Ministry of Energy and Mineral Resources (MEMR) has set bio-fuel reference prices (or HIP BBN) for November 2019 period, in which bio-diesel is set at Rp7,157 per litter, lower compared to Rp 7,358 per liter in previous month.
The price of bio-ethanol, however, was set higher at Rp10,297 per litter compared to Rp10,273 in October.
The energy ministry said the lower bio-diesel price was in line with lower average crude palm oil (CPO) price recently which affects the bio-diesel reference price in November.
Read also: Ministry sets higher October reference price for biodiesel, bioethanol
The bio-diesel and bio-ethanol new reference prices became effective from Nov. 1, 2019.
HIP BBN is set as a reference price for the government agencies to purchase bio-diesel from producers as an implementation of the B-20 program.
The bio-diesel 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