In the Presidential Decree, not only Pertalite type fuel will be refined, as one more crucial aspect is diesel fuel because it is still subsidized. Although it is subsidized per liter, the price is still very low when compared to non-subsidized dieseJakarta (ANTARA) - The Indonesian government is currently formulating a regulation regarding the purchases of subsidized fuels -- Pertalite gasoline and diesel fuel -- so that the distribution can be more on target.
Secretary General of the National Energy Board (DEN) Djoko Siswanto stated that the regulation would be related to two aspects: the increase in world oil prices and the shift of consumers from non-subsidized to subsidized fuel due to price disparities.
"In the Presidential Decree, not only Pertalite type fuel will be refined, as one more crucial aspect is diesel fuel because it is still subsidized. Although it is subsidized per liter, the price is still very low when compared to non-subsidized diesel," he stated during the CNBC Energy Corner broadcast on Monday.
Currently, subsidized diesel fuel is only sold at Rp5,100 per liter, while the price of non-subsidized diesel fuel stands at almost Rp13,000 per liter.
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Siswanto noted that the war between Ukraine and Russia had made the world oil prices to skyrocket, especially of gasoline, so the domestic price of the Pertamax gasoline variant rose to Rp12,500 per liter.
Meanwhile, price of the Pertalite gasoline variant remains the same. Thus, consumers are shifting from buying Pertamax to Pertalite.
That situation has added greater financial burden on state-owned oil and gas company Pertamina, as the company has to import around 50 percent of gasoline at a high price, while the selling price of Pertalite does not increase.
"These two aspects will be further regulated by the new presidential regulation," the secretary-general noted.
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He further affirmed that diesel fuel is the first priority that the government will regulate as this type of fuel is used not only by motor vehicles but also by the mining and plantation industries and even large ships. As for Pertalite gasoline, there was only a shift in consumers, which made the distribution volume increase.
Member of Commission VII of the House of Representatives (DPR) Mulyanto affirmed that the parliament had discussed the regulation of subsidized fuel purchases with Pertamina and the Oil and Gas Downstream Regulatory Agency (BPH Migas).
The government is currently formulating the number of consumers, who are eligible to buy subsidized fuels. Currently, in general, those eligible are micro and small enterprises, small farmers with land of fewer than two hectares, and for public transportation.
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Translator: Sugiharto Purnama, Raka Adji
Editor: Fardah Assegaf
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