Expert Estimates 10 Percent of Pertamax Consumers Will Switch to Pertalite

Energy expert Yayan Satyakti from Padjadjaran University (Unpad) estimates that 10 percent of consumers of Pertamax (RON 92) fuel will switch to Pertalite following the increase in the price of the non-subsidised fuel. “Learning from the experience of April 2022, when Pertamax rose by 39 percent and about one in eight buyers moved to Pertalite, we estimate Pertamax sales will fall by around 10 percent,” said Yayan when contacted by ANTARA from Jakarta on Saturday. Yayan said that when the price of Pertamax rises, people do not reduce their travel intensity, but instead switch to the cheaper Pertalite fuel. The price of Pertamax (RON 92), previously Rp12,300 per litre, has risen to Rp16,250 per litre. Meanwhile, the price of Pertalite remains stable at Rp10,000 per litre. Currently, he continued, the price difference between the two is Rp6,250 per litre, the widest in history. “But the Pertalite quota is still sufficient to accommodate this shift. Only about a third of the remaining quota will be used,” said Yayan. Further, Yayan dissected how the Pertamax increase affects various levels of society. Car owners who fill up with 100 litres of Pertamax in a month must spend an additional Rp395,000 per month. Motorcyclists using 30 litres a month add around Rp119,000. Yayan analysed the impact of the Pertamax price increase based on the government’s household welfare ranking system, which is divided into Deciles 1–10. For Decile 1 households, or the poorest category, Yayan said they are not significantly affected as they hardly use Pertamax. Meanwhile, for the middle class or Deciles 5–7, Yayan estimates some will switch to consuming Pertalite. Furthermore, for upper-middle-class households (D8–D9) as regular car users, they will experience an increase in monthly costs. For the richest households, or Decile 10, Yayan estimates they will bear the greatest burden, as company fleets and operational vehicles for plantations and mining are prohibited from using subsidised fuel. “In short, about half of the total burden of this increase is borne by the richest 20 percent of households. The Pertamax increase works like a tax that targets the wealthy more,” said Yayan. Regarding the migration of consumers from Pertamax to Pertalite, PT Pertamina Patra Niaga has assured that Pertalite will not experience scarcity and that Pertalite distribution across the entire petrol station network continues to run normally in accordance with government assignments. “We urge the public to use energy wisely by purchasing fuel according to their needs and its intended use, as well as according to the type of vehicle used,” said PT Pertamina Patra Niaga Corporate Secretary Roberth MV Dumatubun.