Fuel prices for industry increased

The Jakarta Post, Jakarta

State oil and gas firm PT Pertamina has increased fuel prices for industry for October by up to 21.9 percent, higher than previously expected.

Premium gasoline made the biggest jump to Rp 6,290 per liter for October delivery from Rp 5,160 a liter applied in September, while diesel fuel rose 12.1 percent to Rp 6,000 per liter, Pertamina's fuel division head Achmad Faisal said on Wednesday.

"The new prices will probably be applied starting Saturday, as we need time to inform our customers (of the new price)," said Faisal.

"The decree (officiating the price hike) was signed today (Wednesday)," he said.

Kerosene for industries rose to Rp 6,400 per liter from Rp 5,600 a liter charged last month. A liter of diesel oil for industries will cost Rp 5,780 as compared to Rp 5,150 in September while fuel oil prices rose 21 percent to Rp 3,810 per liter.

The international bunker prices for October are 58.4 U.S. cents for a liter of diesel fuel, 56.3 cents for diesel oil and 37.10 cents for fuel oil.

With the implementation of Presidential Decree No. 55/2005 on the new domestic fuel prices, no subsidized-fuel quota is set aside for industries, except for small enterprises and fishermen, who will receive a monthly quota of eight kiloliters (kl) each.

The government raised retail fuel prices by an average of 126.6 percent on Oct. 1 to slash subsidies and save the state budget.

Pertamina began applying market prices for oil, gas, mining and export-oriented industries, as well as entities that use more than 500 kl of fuel in July.

It included more industries, including fishery companies, those located in bonded zones, independent power producers and entities that use more than 24 kl of fuel, the following month.