Fuel prices for industry to go up 15% for August<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
Coal and oil companies have question the formula used to
\ncalculate fuel prices applied to the mining sector, as state oil
\nand gas firm Pertamina has raised prices by more than 15 percent
\nfor August deliveries.<\/p>\n
Indonesian Mining Association chairman Jeffry Mulyono said
\nthat the hike was more than expected and the association wished
\nto observe the pricing structure.<\/p>\n
\"Pertamina is not transparent in explaining the increased
\nprices,\" Jeffry, who also chairs the Indonesian Coal Mining
\nAssociation, told The Jakarta Post on Tuesday.<\/p>\n
The organizations will officially file questions regarding the
\nfuel prices to the oil firm, he added.<\/p>\n
Pertamina raised the price of diesel fuel to be used by oil
\nand gas companies, the mining sector, as well as companies with a
\nmonthly usage of more than 500 kiloliters of fuel, by 15.6
\npercent to Rp 5,480 (56 U.S. cents) a liter from Rp 4,740 per
\nliter for July deliveries.<\/p>\n
The price of marine diesel fuel increased by 15 percent to Rp
\n5,240 per liter this month from Rp 4,560 a liter last month,
\nwhile fuel oil rose to Rp 3,150 a liter from Rp 2,900.<\/p>\n
Pertamina head of fuel division Achmad Faisal said that the
\nnew prices were based on the average prices of the Mid Oil Platts
\nSingapore (MOPS) in the month previous to delivery.<\/p>\n
\"The formula is MOPS plus 15 percent, which covers
\ntransportation and distribution fees, and 10 percent in value-
\nadded tax,\" said Faisal.<\/p>\n
He further said that the prices applied for August reflected
\nthe higher MOPS prices.<\/p>\n
\"If you look at it daily, the price may not seem to rise as
\nmuch (as 15 percent) in the previous month,\" said Faisal.
\n\"However, if you average them in a month, it did rise.\"<\/p>\n
Global crude oil prices hovered at $60 per barrel last month,
\nrising to over $61 on Monday after the death of Saudi Arabian
\nKing Fahd and problems at a BP refinery in the U.S.<\/p>\n
Pertamina, with government permission, has applied market
\nprices for diesel fuel for export-oriented companies since July
\nto ease subsidy pressure on the state budget.<\/p>\n
Diesel fuel prices more than doubled from the subsidized Rp
\n2,200 charged before.<\/p>\n
Pertamina has extended the application of market prices this
\nmonth to Indonesian power producers that do not sell their output
\nto state electricity firm PLN, manufacturers located in bonded
\nzones and companies that switched from non-fuel products to fuel.<\/p>\n
The prices are also effective for any additional allocation
\nfor companies with fuel demand of over 24 kl per month. The fuel
\nallocations are based on the average monthly usage in the
\nprevious three months.<\/p>\n
Major coal players have said that due to the new policy,
\nproduction costs had increased by between $2 and $3 a ton.
\nHowever, as global prices of the commodity stay strong, they have
\naccepted the price hike.<\/p>\n
Jeffry said that with the August prices, costs would climb by
\nanother 75 cents per ton. \"Fuel now attributes 25 percent of
\ntotal costs from about 18 percent previously,\" he said.<\/p>\n
Domestic Fuel Prices for Industry
\n----------------------------------------------------------------
\nNo. Fuel Type Market Price Market Price<\/p>\n
per July (Rp\/liter) per Aug. (Rp\/liter)
\n----------------------------------------------------------------
\n1. Premium gasoline 4,060 4,640
\n2. Kerosene 4,940 5,490
\n3. High speed diesel 4,740 5,480
\n4. Marine diesel fuel 4,560 5,240
\n5. Marine fuel oil 2,900 3,150
\n----------------------------------------------------------------
\nSource: PT Pertamina<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fuel-prices-for-industry-to-go-up-15-for-august-1447893297",
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