Fuel prices for industry up 12%

JAKARTA (JP) State oil and gas company Pertamina announced on Wednesday an average of 12 percent increase in fuel prices for industrial users in June.

Pertamina said in a statement that the price of automotive diesel oil for industrial users would be increased by 11 percent to Rp 1,285 (about 11.5 U.S. cents) per liter, industrial diesel oil by 12 percent to Rp 1,250, bunker oil by 14 percent to Rp 945 per liter, and kerosene by 9 percent to Rp 1,275 per liter.

The industrial users will also be required to pay a handling fee surcharge of 5 percent.

Pertamina said the new prices, which are half the average international prices for May, would take effect on June 1.

In April, Pertamina began to charge industrial users 50 percent of international prices as part of the government's program to reduce fuel subsidies. Foreign oil, gas mining and shipping companies are required to buy fuel at international prices.

The prices are adjusted monthly based on the previous month's average Mild Oil Platts Singapore (MOPS) price indicator.

Pertamina said prices of the fuel sold at gas stations would remain at Rp 350 per liter of kerosene, Rp 600 for automotive diesel oil, Rp 550 for industrial diesel oil and Rp 400 for bunker oil.

The price of premium fuel sold to both industrial users and the public through gas stations will remain the same at Rp 1,150 per liter.(hen)