Price cut war in retail fuel drums up

Competition in non-subsidized fuel retail between Pertamina and Shell begins to heat up as both companies are lowering prices to lure consumers.

Royal Dutch Shell Plc, for instance, has since Wednesday lowered its fuel products to between 6.9 percent and 10.5 percent.

Shell Company?s general manager for retail division Surinderdeep Singh said in a statement in Jakarta Tuesday that in setting the price, Shell refers to the oil price of US$60 per barrel set by Mid Oil Platts Singapore (MOPS) as a benchmark.

The new price of its Shell Super is set at Rp4,950 per liter, down from the previous Rp5,350 per liter. Its Shell Super Extra is sold for Rp5,350 per liter, down from the previous Rp5,750. It has lowered its Shell Diesel to Rp5,500 from the previous Rp6,150.

Meanwhile, Pertamina plans to lower the prices of its fuel products, Pertamax, Pertamax Plus and Pertadex within this week.

?The products will be reduced to an average six percent,? said Pertamina?s fuel division head Djaelani Sutomo. (*)