Indonesian Political, Business & Finance News

Price Hike: Expert Predicts 10 Percent of Pertamax Users Will Switch to Pertalite

| | Source: REPUBLIKA Translated from Indonesian | Economy
Price Hike: Expert Predicts 10 Percent of Pertamax Users Will Switch to Pertalite
Image: REPUBLIKA

Energy expert from Padjadjaran University (Unpad) Yayan Satyakti estimates 10 per cent of consumers of Pertamax (RON 92) fuel will switch to Pertalite, following the non-subsidised fuel price increase. “Learning from the experience in April 2022, when Pertamax rose 39 per cent and around one in eight buyers shifted to Pertalite, we estimate Pertamax sales will drop by about 10 per cent,” Yayan said when contacted on Saturday (14/6/2026). Yayan stated that when the price of Pertamax increases, the public does not reduce their travel intensity, but rather switches to the cheaper Pertalite fuel. The price of Pertamax (RON 92) previously at Rp 12,300 per litre has risen to Rp 16,250 per litre, whilst the price of Pertalite remains at Rp 10,000 per litre. He noted that the price difference between the two now reaches Rp 6,250 per litre, which is the widest price gap in history. “However, the Pertalite quota is still sufficient to accommodate this shift. Only about a third of the remaining quota will be used,” Yayan said. Furthermore, Yayan dissected how the Pertamax price hike affects various levels of society. Car owners who consume 100 litres of Pertamax a month must increase their spending by around Rp 395,000 per month, whilst motorcyclists who consume 30 litres a month must increase costs by around Rp 119,000. Yayan also explained the impact based on the government’s community welfare ranking system, divided into deciles 1 to 10. For the poorest household group, decile 1, Yayan said the impact is relatively small because this group hardly uses Pertamax. Meanwhile, for the middle class, or deciles 5 to 7, Yayan estimates some will switch to Pertalite. As for upper-middle-class households (deciles 8 and 9) who are regular car users, they will experience an increase in monthly expenditure. For the wealthiest households, or decile 10, Yayan estimates they will bear the heaviest burden because company fleets and operational vehicles for plantations and mines are prohibited from using subsidised fuel. “In short, about half of the total burden of this increase is borne by the richest 20 per cent of households. The Pertamax increase works like a tax that targets wealthier people more,” Yayan said. Regarding consumer migration from Pertamax to Pertalite, PT Pertamina Patra Niaga confirmed that Pertalite is not experiencing scarcity and its distribution across the entire fuel station network continues running normally in accordance with the government’s assignment. “We urge the public to be wise in using energy by purchasing fuel according to their needs, its intended use, and the type of vehicle used,” said Pertamina Patra Niaga Corporate Secretary Roberth MV Dumatubun.

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