Government Decides Price of Premium & Diesel Does Not Increase Until 2019

JAKARTA – The government ensures the price of Premium, and Solar will not rise until 2019. The decision was made after seeing the development of public purchasing power that must still be maintained by not raising the price of the fuel and the particular assignment.

Minister of Energy and Mineral Resources (IEMASI) Jonan said, in accordance with the direction of the president, as well as agreements with the Ministry of SOEs, Ministry of Finance, and PT Pertamina (Persero), the price of premium and diesel is decided not to increase.

“Asked how the price of crude oil continues to rise to US $ 100 per barrel, the price of Premium and Solar fuel does not go up and we will continue to monitor crude oil price developments,” he said on Monday (5/3).

Jonan also said the decision to keep the price of Solar was also after consultation with the House of Representatives Commission VII. They [Commission VII] also support not to raise the price of the Solar subsidy.

“The bottom line will also be considered compensation for not increasing the price of Premium and Solar,” he said.

Jonan also denied that the decision not to raise the price of Premium and Solar is related to the presidential election 2019.

“This decision was taken because of the related public purchasing power,” he said.

On the other hand, the unchanged Solar subsidized fuel price decision makes an increase in subsidies from currently around Rp500 per liter.

Executor of the task (Plt) Director General of Oil and Gas Ministry of ESDM Ego Syahrial said, it is necessary additional subsidies for Solar. So, Solar subsidies that had been Rp500 may be added.

“Maybe it could be in the area to Rp1,000 per liter,” he said.

Ego stressed, the decision not to raise the price of Premium and Solar fuel is in order to maintain public purchasing power. On the other hand, Price Indonesia Crude Price (ICP) also showed a decline after February 2018 was in the range of US $ 61.61 per barrel, previously in January 2018 the price of ICP was around US $ 65.59 per barrel.

“Outside the decision not to raise the price of this fuel, we will also keep a close watch on the development of world crude oil prices and ICP,” he said.