'Gasoline price won't be lowered'

'Gasoline price won't be lowered'

The Jakarta Post, Jakarta

The price of premium gasoline will not decline next month despite the recent strengthening of the rupiah against the U.S. dollar, president of state-owned oil and gas firm Pertamina Baihaki Hakim said on Thursday.

Speaking at a hearing session with the House of Representatives Commission VIII on science, technology and environmental affairs, he said that the June price of premium gasoline and other fuel products except fuel oil would be the same as this month's price level.

He said that the price of fuel oil would increase by Rp 30 (0.3 U.S. cents) per liter to Rp 1,150 from Rp 1,120.

Pertamina and the government set the price of fuel products each month based on price developments in Singapore. But the government also sets the ceiling and floor prices for the fuel products.

Pertamina is expected to announce the price list for June at the end of this month.

There have been high expectations that the price of premium gasoline, which already reached its ceiling price level of Rp 1,170 per liter this month, would decline due to the stronger rupiah, which would make the cost of importing fuel cheaper.

Although Indonesia is an oil exporting country, it also imports some fuel products.

But Baihaki said that Pertamina would not lower the price of gasoline because the price of oil in the international market remained relatively high, hovering at around $25 per barrel.

"Fuel prices for next month will be mostly the same as this month's level," he said.

The price of automotive diesel is currently set at Rp 1,400 per liter, industrial diesel is Rp 1,390 per liter, kerosene for industry is Rp 1,410 per liter, while the price of kerosene for households and small industries is Rp 600 per liter.

Meanwhile, Muchsin Bahar, Pertamina's downstream director said that the price of premium gasoline could decline in July on expected lower international oil prices and a stronger rupiah.