Pertamina Patra Niaga cuts aviation fuel prices by up to 10%

By Romel S. Gurky

State fuel distributor PT Pertamina Patra Niaga has reduced domestic aviation fuel (Avtur) prices by up to 10% effective June 1, following a decline in global energy prices, a move the company said would support Indonesia's aviation sector and national air connectivity.

The company said average Avtur prices nationwide in June were up to 10% lower than in May, with reductions varying by airport depending on pricing formulas, distribution costs and logistics considerations.

At Soekarno-Hatta International Airport, Avtur prices fell to Rp22,190 per litre from Rp24,580 per litre in May. Prices at Ngurah Rai International Airport in Bali declined to Rp23,480 per litre from Rp26,190, while rates at Kualanamu International Airport in North Sumatra dropped to Rp23,090 per litre from Rp25,720.

Pertamina Patra Niaga said the adjustment followed monthly pricing mechanisms regulated by the Ministry of Energy and Mineral Resources, which are based on international fuel benchmarks, including the Mean of Platts Singapore (MOPS) Kerosene/Jet assessment.

Corporate Secretary Roberth MV. Dumatubun said the price reduction reflected lower global energy prices recorded during May.

Read also: Govt reviewing non-subsidized fuel price adjustment, avtur remains competitive

"This Avtur price adjustment is made in accordance with the formula established by the regulator, namely the Ministry of Energy and Mineral Resources, while also taking into account global energy price movements," Roberth said in a statement.

He said the company aimed to balance commercial considerations with supply reliability and long-term sustainability of aviation fuel services.

Pertamina Patra Niaga expects the lower fuel prices to support domestic flight activity, strengthen tourism, improve connectivity between regions and contribute to regional economic growth.

The company said pricing for international aviation customers would continue to be determined based on market conditions and regional competition while prioritizing domestic aviation fuel requirements.

Pertamina Patra Niaga currently supplies aviation fuel through a network of 72 Aviation Fuel Terminals across Indonesia, including facilities serving major commercial airports and remote pioneer airports.

The company said it would continue monitoring developments in global energy markets and coordinate with the government to ensure reliable, competitive and sustainable aviation fuel supplies.

Editing by Reiner Simanjuntak