Kerosene price set at Rp 505 a litter

JAKARTA (JP): Governor Sutiyoso issued a decree on Saturday, setting the highest price of kerosene sold by distributors at Rp 505 per liter and Rp 700 at the retail end such as shops.

In a written statement received on Monday, City Administration spokesperson Muhayat said the new price was set after calculating all costs and profit margins for distributors, transportation companies and retailers.

The basic after sales tax price of kerosene from state oil and gas company Pertamina now stands at Rp 400 per liter, up 12.5 percent from the previous level of Rp 350 per liter.

A number of cost and profit margin components were then added to that basic Pertamina price. They include a distributors' margin of Rp 24 per liter, transportation costs of Rp 40 and an agents' margin of Rp 41 per liter.

Based on Gubernatorial Decree No. 1736/2001, kerosene prices for small retailers should range between Rp 550 to Rp 700 per liter. No retailer may sell kerosene above Rp 700 per liter.

Those who violate the price regulation will be given sanctions from the city administration and Pertamina. The monitoring will be conducted by mayors, subdistrict heads and village chiefs.

Kerosene is still widely used in Jakarta, especially by poor families for cooking.

The decree for kerosene prices for Jakarta was issued following the fuel price increase which came into force on Saturday.

Under the new increase, the price of premium gasoline has risen by 26 percent to Rp 1,450 (about 12.8 U.S. cents) per liter from Rp 1,150; automotive diesel fuel has surged by 50 percent from Rp 600 to Rp 900; and kerosene has increased by 14.28 percent to Rp 400 from Rp 350 per liter.(hdn)