According to data of the Indonesian Oil Price Team of the Economic and Human Resources Ministry in Jakarta on Monday, the ICP increase is caused by among other things the drop in Iran`s oil exports in March 2012 of 300,000 barrels per day due to the tension between Iran and western countries relating to the nuclear issue.
While the tension had subsided after Iran was ready to continue negotiations on the nuclear program and US President Barack Obama said it will continue diplomatic efforts and avoid prioritizing military efforts against Iran.
Another factor is that the US and UK governments denied agreement of the two countries to release their oil reserves to control the high oil prices.
The price team also said that a projection of crude oil production from non-OPEC countries in 2012 shows a decline from the projection of a month earlier.
For the Asian Pacific region, an oil price increase is also caused by the increasing oil consumption in Japan for its power plant and the still relatively high demand for oil products from China and India.
The development of main crude oil on the international market in March 2012 compared to those in February 2012 is that WTI (Nymex) increased by 3.95 dollars per barrel from 102.26 to 106.21 dollars, and Brent (ICE) increased 5.48 from 119.06 to 124.54 dollars.
In the meantime, Tapis (Platts) increased 6.52 dollars per barrel from 126.05 to 132.57 dollars, and OPEC basket increased 5.55 dollars from 117.48 to 123.03 dollars.
Earlier, ICP in the last six months has not met the condition to raise subsidized oil prices on April 1, 2012.
The ICP within the last six months, from October 1, 2011 to March 31, 2012 had been set at 116.49 US dollars per barrel, namely 109.25 dollars per barrel in October 2011, in November 112.94 dollars, in December 110.70 dollars, January 2012 115.90 dollars, in February 122.17 dollars and in March 128 dollars.
The 116.49 dollars mean 11 pct above the assumption of the revised 2012 State Budget set at 105 dollars per barrel.
Thus, the ICP in the last six months from October 2011 to March 2012 has not met the condition to raise fuel price set in the Revised 2012 Draft State Budget of a minimum of 15 pct or 120.75 dollars per barrel.
The House plenary session in the small hours of Saturday (31/3) decided to add Article 7 paragraph 6A in the Revised 2012 Draft State Budget.
The stipulation authorized the government to increase or lower subsidized fuel prices.
Article 7 paragraph 6A of the Revised 2012 State Budget stipulated that "In case Indonesia`s Crude Oil Price (ICP) in the current period increased or lowered by 15 pct in the last six months from the price of international oil assumed in the Revised 2012 State Budget, the government would be authorized to make an adjustment of subsidized fuel price and its supporting policy."
The Draft State Budget will be passed into Law after being signed by President Susilo Bambang Yudhoyono and entered in the State Gazette.