Pertamina to raise fuel prices for industries

PT Pertamina, Indonesia's state-owned oil company, will increase prices of most types of fuel sold to factories and manufacturers next month, Bloomberg reported on Wednesday.

Pertamina will raise prices of gasoline, diesel and kerosene by an average of 9 percent from this month's prices, and fuel oil by 2 percent, Djaelani Sutomo, the head of Pertamina's fuel division, said by telephone in Jakarta.

"The strengthening of the rupiah against the U.S. dollar was not enough to offset the higher prices," Sutomo said.

Benchmark fuel prices in Singapore have increased to above $70 a barrel from $65 a barrel month ago, he said. Pertamina uses fuel prices in Singapore, assessed by oil-pricing service Platts, as the benchmark to determine fuel prices for industries.

The Indonesian government removed subsidies for fuel used by industries in July last year to reduce the burden on the state budget as global crude prices soared. Retail prices for individual buyers are still state subsidized and controlled. (*)