Pertamina now adjusts fuel prices every two weeks

State oil and gas firm PT Pertamina raised fuel prices for industry in the middle of the month, saying it has decided to adjust fuel prices every two weeks rather than every one month becuase the fluctuation in crude prices.

The decision to raise the fuel prices was made by the company's board of directors, Director of Commerce and Marketing Hanung Budya was quoted by Kompas as saying on Thursday.

"Price adjustment is being made every two weeks because the fluctuation of crude price," he said.

Crude prices hit record high of less than $100 per barrel several days ago. The price has declined but continues to fluctuate. Normally, Pertamina announces new fuel prices at the end of each month for the following month.

Pertamina raised retail prices for several oil-based fuels for industry beginning November 15, 2007.

Under the decree signed on November 12, 2007, Pertamina sets new prices for diesel fuel, diesel oil and high-speed diesel in line with the increasing Mild Oil Platts Singapore (MOPS) around 10.98 percent and 12.66 percent.

The price for high speed diesel (HSD) has been raised to Rp 7,537.20 per liter from 6,849.70 per liter, marine diesel fuel (MDF) increased to Rp 7,401.90 per liter from Rp 6,641.80 per liter and marine fuel oil (MFO) up to Rp 5,668.3 from Rp 4,776.20 per liter.

Kerosene and Premium gasoline remain unchanged as Nov 1, 2007.

Prices of subsidized fuels for public transportation are maintained at Rp 4,500 per liter for premium gasoline and Rp 4,300 per liter for HSD. Price for subsidized kerosene for household and small industry consumption is maintained at Rp. 2,000 per liter. (*)