Pertamina cuts Pertamax prices

State owned oil and gas company Pertamina will lower the prices of non-subsidized premium fuels and diesel oil for industries as an adjustment to the recent decline in the world's crude oil prices.

The head of Pertamina's Fuel Division, Ahmad Faisal said in Jakarta on Friday that the prices of the high octane Pertamax and Pertamax Plus would be lowered by three percent or by about Rp 200 to Rp 5,500 and Rp 5,700 per litter, respectively from Rp 5,700 and Rp 5,900 per litter at present.

"The new prices will take affect beginning next week," he was quoted as saying. He denied if the price cut would be made to enable it compete with new retail player Shell in the high-octane fuel market.

Shell which opened its first fuel station only a few weeks ago sells similar high-octane fuels Shell Super and Shell Super Extra for Rp 5,700 and Rp 5,900 per litter, respectively.

The recent decline in the crude oil prices has also resulted in the drop in the price indicator set under the Mid Oil Platts Singapore (MOPS), which is used by Pertamina as the reference to determine the prices of both subsidized and non-subsidized fuels.

As the consequence of the drop in the fuel prices,Pertamina will also cut the price of diesel oil for industries from Rp 6,170 per litter. "If the world's crude oil prices

continue to decline, the price of diesel oil for industries will be also lowered by the end of December," he said.(Dino)