Pertamina expects significant rise in price of automotive diesel next year
Wednesday, December 14 2016 - 02:56 AM WIB
State-owned oil and gas firm PT Pertamina expects the Ministry of Energy and Mineral Resources to increase the price of automotive diesel by around Rp 500 per liter next year in line with the current rising trend in the global price of oil.
Pertamina Vice President Director Achmad Bambang said on Tuesday that the company has not increased the price of automotive diesel since October, following a rise in September, despite the rising trend in the price of oil, causing the company to suffer losses in selling the subsidized fuel product.
Bambang said that by maintaining the current price of automotive diesel at Rp 5,150 per liter, Pertamina is set to suffer losses of Rp 1.56 trillion in the period of October-December of 2016. He said that the company managed to cover the losses from profits it gained in selling the non-subsidized Pertamax and Petralite fuel products as well as the subsidized Premium fuel.
?The increase (in the price of automotive diesel next year) will be significant,? he said at the Pertamina Energy Forum 2016 as reported by Bisnis Indonesia.
The ministry revises the price of fuel products every three months. The 2017 state budget draft allocates a Rp 500 billion subsidy for automotive diesel fuel.
He did not say whether the price of Premium and other fuel products will also be increased next year. (*)