Ministry sets lower reference price for biodiesel
Monday, August 5 2019 - 02:32 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 August 2019 at Rp 6,795 per liter, and for bio-ethanol at Rp 10,200 per liter.
The ministry said in a statement obtained Sunday that the new reference price was effective as of August 1.
The August reference prices for biodiesel and bio-ethanol were lower than the July reference price respectively at Rp 6,970 per liter and Rp 10,255 per liter.
The ministry said that the lower August reference price for biodiesel was in line with lower average crude palm oil price set by PT Kharisma Pemasaran Bersama (KPB) during the period of June 15-July 14 at Rp 6,394/kg compared to Rp 6,573 per kg in the previous period.
HIP BBN is set as 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 Reiner Simajuntak