Pertamina cuts fuel price for industries

JAKARTA (JP): State oil and gas company Pertamina has cut fuel prices for industrial users by an average of 5.5 percent, effective throughout August.

Pertamina said in a statement that it reduced the price for automotive diesel oil by 4.8 percent to Rp 1,190 (12.7 U.S. cents) per liter, industrial diesel oil by 5 percent to Rp 1,215, kerosene by 5.9 percent to Rp 1,205 and fuel oil by 9 percent to Rp 808.

The new prices are half the average international fuel prices for July, plus a 5 percent handling fee, Pertamina spokesman Ridwan Nyak Baik said.

Starting last April, Pertamina charges industrial users 50 percent of international prices as part of the government's program to reduce fuel subsidies.

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

Foreign oil and gas, mining and shipping companies have to buy fuel at international prices.

Aside from April's hike for industries, Pertamina had also raised prices for kerosene as well as gasoline and diesel oil sold at gas stations on June 16.

The price of Kerosene was raised 14 percent to Rp 400 per liter, automotive diesel oil by 50 percent to Rp 900 and Premium gasoline by 26 percent to Rp 1,450.

Ridwan said these types of fuel prices would remain the same for August.

The price of Premium gasoline sold to both industrial users and the public at gas stations will also remain the same at Rp 1,450 per liter. (05)