Fuel prices up by average of 14.46%

Fuel prices up by average of 14.46%

The Jakarta Post, Jakarta

State oil and gas firm Pertamina announced on Thursday an average 14.46 percent increase in fuel prices for this month from the levels in April.

Pertamina said in a statement that, with effect from May 3, the price of premium gasoline was raised to Rp 1,750 (about 18.81 U.S. cents) per liter, from Rp 1,600 and automotive diesel oil to Rp 1,400, from Rp 1,250.

Industrial diesel oil increased to Rp 1,390, from Rp 1,240, kerosene for industry to Rp 1,410, from Rp 1,310 and fuel oil to Rp 1,120, from Rp 1,030, Pertamina said.

Kerosene for households and small industry remains at Rp 600.

Starting in March, the government has set domestic fuel prices every month, based on the price of Mid Oil Platt Singapore (MOPS), although the government has also set ceiling and floor prices to anticipate any sharp fluctuation in the international price.

As international oil prices had been hovering at around US$26 per barrel during the past few weeks amid tension in the Middle East, higher fuel prices for the month of May had already been anticipated.

Pertamina said the price of premium gasoline for this month should have been set at Rp 1,938 per liter, but the ceiling price for the product was Rp 1,750.

The oil and gas company had been widely expected to announce the new fuel prices at the end of April, but the government postponed it as labor groups in several major cities in the country were planning to stage rallies to celebrate Labor Day.

The raising of fuel prices has always been a politically sensitive issue in the country.