Pertamina increases fuel prices for industrial users

State-owned oil and gas company PT Pertamina will increase prices of oil products sold to miners and factories by as much as 5.3 percent next month, as a weakening rupiah makes it more expensive to import the fuel.

The price of gasoline sold to industries will rise 5.3 percent next month from Rp 6,174 a liter in June, Achmad Faisal, director of trading and marketing at Pertamina, said Thursday. The fuel oil price will increase 0.3 percent, the smallest gain, from Rp 3,745 a liter.

?The oil product prices have stayed relatively stable, but the rupiah weakened? and made import bills rise, Faisal said. The new prices take effect July 1.

Indonesia?s rupiah averaged 9,303 against the U.S. dollar between May 16 and June 15, 5.5 percent lower than the Rp 8,822 a dollar average a month earlier.

Pertamina increased fuel prices by as much as 12.9 percent in June from May levels. The company is selling kerosene to manufacturers and mining companies at Rp 6,181 a liter and marine diesel at Rp 5,788 a liter this month.

Diesel for transportation purposes retails at Rp 6,288 a liter, including a tax for fuel used in vehicles, and at 6,014 rupiah a liter for manufacturing purposes.

Pertamina uses fuel prices in Singapore, assessed by oil-pricing service Platts between the 15th of each month, as the benchmark to determine fuel prices for industries.

Government removed subsidies for fuel used by industries in July last year as soaring global crude prices made state subsidy payments unaffordable. Retail prices for individual buyers are still subsidized and controlled by the state. (godang)