Analyst: Pertamax to Pertalite consumer shift still a concern despite price cut

Energy economist from Universitas Gadjah Mada (UGM), Fahmy Radhi, has stated that the migration of consumers from Pertamax to Pertalite remains a concern for the government. He noted that despite a recent price reduction, the disparity between the two fuels is still significant.

“With the price still at Rp15,950, the price gap with Pertalite is still quite wide. This wide disparity will encourage consumers, particularly the lower-middle class, to migrate or switch to Pertalite,” Fahmy said when contacted by ANTARA in Jakarta on Tuesday. He conveyed that the price reduction from Rp16,250 per litre to Rp15,950 per litre still leaves a considerable gap compared to Pertalite. Therefore, he assessed that the price cut is not yet sufficient to prevent consumers from switching to Pertalite.

PT Pertamina (Persero) announced that the price of non-subsidised fuel Pertamax dropped from Rp16,250 in July to Rp15,950 per litre starting 1 August. VP Corporate Communication of Pertamina Patra Niaga, Kitty Andhora, stated that the reduction in non-subsidised fuel prices was implemented following government regulations and directives, taking into account global oil price trends, the rupiah exchange rate, and public purchasing power.

In addition to Pertamax, other non-subsidised petrol prices also experienced reductions. Pertamax Turbo decreased from Rp19,300 per litre to Rp18,300 per litre, while Pertamax Green 95 dropped from Rp17,000 per litre to Rp16,600 per litre. These prices apply to regions with a Vehicle Fuel Tax (PBBKB) of 5 percent, such as DKI Jakarta.