New kerosene price approved

BANDUNG: The Bandung city administration, the city council and representatives of the state-owned oil and gas company Pertamina have agreed to set a new kerosene price effective as of Friday, a councillor said on Thursday.

Chairman of the city council's Commission B on financial affairs Hidayat Zaini said that the new price was set at Rp 435, or Rp 5 higher than the price in Jakarta.

"The higher kerosene price here is due to the province's mountainous terrain, which makes it difficult to reach many areas," Zaini said on the sidelines of a meeting discussing fuel prices in the province.

However, the new kerosene price is similar to the average price prevailing in three other provinces -- Yogyakarta, Central Java and East Java, Zaini said.

The breakdown of the price reveals a 10-percent duty set by Pertamina, a transportation charge of Rp 65 per liter for Pertamina deliveries to its agents within a radius of 40 kilometers, and Rp 20 per liter for agents' commission.

Zaini said the agents would have to prepare price lists so as to inform the public and avoid mark-ups, while Pertamina would be required to conduct price control operations. (25/lup)