North Sumatera’s Economic Observer: Adjustment in Non-Subsidized Fuel Prices Decrease Makes Pertamina More Competitive
Medan, November 1, 2023 - PT Pertamina Patra Niaga, a Subholding Commercial & Trading company under Pertamina, remains committed to periodically evaluating the selling prices of non-subsidized fuel products or general fuel (JBU). On November 1, 2023, Pertamina Patra Niaga once again made downward price adjustments for the Pertamax Series and Dex Series.
Regarding this, North Sumatera’s Economic Observer, Gunawan Benjamin, stated that for non-subsidized fuel, the price adjustment downwards was appropriate, carried out while considering market mechanisms and following the policies of each business entity.
"When the production cost's economy experiences a decrease, and the current selling price is already above the economic cost, I believe it is quite rational for business entities to adjust the non-subsidized fuel price. Additionally, in October, the increase in global crude oil prices was triggered by the conflict between Hamas and Israel. Currently, the oil price is being traded around USD 81 per barrel," explained Gunawan on Wednesday (1/11/2023).
According to him, Pertamina's non-subsidized fuel prices compared to those of Pertamina's competitors are still more competitive. The new prices applicable in provinces with a Motor Vehicle Fuel Tax (PBBKB) rate of 7.5%, such as in the North Sumatera region.
"Pertamina is still superior when comparing the difference in the fuel selling prices. However, the picture of fluctuating non-subsidized oil prices must be interpreted as the fundamental economic fuel price," Gunawan emphasized.
As we are aware, all types of gasoline products from Pertamina have undergone a decrease in prices. Since the last price adjustment on November 1, 2023, compared to the October 2023 period in the North Sumatera region, Pertamax (RON 92) decreased to IDR 14,000 per liter from the previous IDR 14,300. Meanwhile, Pertamax Turbo (RON 98) decreased to IDR 15,800 per liter from IDR 16,950.
For diesel-type products, namely Dexlite (CN 51), the price was adjusted to IDR 17,300 per liter from the previous IDR 17,550. Pertamina Dex (CN 53) decreased to IDR 18,100 per liter from IDR 18,250.
Irto Ginting, Corporate Secretary of Pertamina Patra Niaga, explained that the new prices as of November 1, 2023, are following the price determination regulated in Ministerial Decree No.245.K/MG.01/MEM.M/2022, as an amendment to Ministerial Decree No. 62/K/12/MEM/2020 regarding the formulation of non-subsidized fuel prices (JBU).
Non-subsidized fuel prices fluctuate. Thus, Pertamina conducts periodic evaluations following market trends and mechanisms. Pertamina adjusts prices according to global oil price trends and the average oil publication price.
"Pertamina's non-subsidized fuel prices consider various aspects, including crude oil, MOPS publication, and exchange rates, to ensure that Pertamina can guarantee fuel supply and distribution throughout Indonesia," explained Irto.
Irto added that as a State-Owned Enterprise (SOE) tasked with distributing fuel to every corner of the country, they are fully committed to providing and distributing fuel based on the Availability, Accessibility, Affordability, Acceptability, and Sustainability principles.
"Pertamina Patra Niaga is committed to providing quality fuel supplies throughout Indonesia, not only in major cities but also in every corner of the country, at competitive prices," he added.
For information on the latest prices of Pertamina's entire product range, the public can access https://pertamina.com/id/news-room/announcement/daftar-harga-bahan-bakar-khusus-non-subsidi-tmt-1-november-2023-zona-3 website or contact the Pertamina Call Center (PCC) at 135.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**