Pertamina to raise fuel prices for industries

State-owned oil and gas company Pertamina will likely raise the prices of non-subsidized fuels sold to industries later next month following the sharp increase in the crude oil prices in the world.

 

Pertamina has yet to determine the price increase but the company's president director Ari H. Soemarno said that the increase would be about Rp 200 per liter for Premium gasoline, diesel oil and other fuel products.

 

Ari said that the rise of the prices of non-subsidized fuels would be needed as an adjustment to the surge in the crude oil prices which almost reached US$90 per barrel in the world market last week.

 

Meanwhile, Pertamina's deputy director for marketing Hanung Budya said that the surge in the crude oil prices would normally cause an increase in the demand for subsidized fuel especially Premium gasoline in the country.

 

He estimated that the demand for fuel as the result of the surge in the crude oil prices would exceed the quota set by the government.

 

"We estimate the demand for subsidized Premium gasoline would reach 17.4 million kilo liters, far higher than the government's quota of 16.6 million kilo liters," he added.

 

Although the government has for years removed the subsidy of fuels sold to industries, the sales of fuels to the public remains subsidized. The largest subsidy is given to kerosene sold to households. (godang).