Price of industrial diesel up
Price of industrial diesel up OR Industrial diesel price increases
The Jakarta Post Jakarta
State oil and gas company Pertamina announced on Thursday the prices of fuel products for March, which mostly remain the same as those in February except for industrial diesel fuel, fuel oil and kerosene for industry.
Pertamina said in a statement that the price of industrial diesel was raised to Rp 1,120 per liter from Rp 1,110, fuel oil to Rp 950 from Rp 925, and kerosene for industry to Rp 1,270 from Rp 1,230.
It said that the prices of premium gasoline sold at gas stations remained Rp 1,550 per liter, automotive diesel oil Rp 1,150 and kerosene for households and small enterprises at Rp 600.
The government decided in January to peg fuel prices in the country to those in neighboring Singapore except kerosene for households and small industry.
The price of premium gasoline is set at the Mid Oil Platts Singapore (MOPS) price, while the prices of automotive diesel, industrial diesel, fuel oil and kerosene for industry at 75 percent of the MOPS prices.
Pertamina did not explain why most fuel prices remained unchanged, but Director General of Oil and Gas Rachmat Sudibyo said earlier that as world oil prices remained stable at around US$19 per barrel in February, and the rupiah managed to slightly strengthen against the U.S. dollar, fuel prices for March would not change much.
From now on, Pertamina will announce the price of fuel products at the beginning of each month.
The government, however, has set a maximum and minimum price for fuel products to avoid extreme fluctuations.
The minimum price for premium gasoline is Rp 1,450 and the ceiling is Rp 1,750; for automotive diesel between Rp 900 and Rp 1,550; for industrial diesel at Rp 900 and Rp 1,520; fuel oil at Rp 800 and Rp 1,150; and kerosene for industry at between Rp 900 and Rp 1,650.
The government allows market mechanisms to decide the price of most fuel products in a bid to reduce fuel subsidies and to ease pressure on the state budget.
Raising fuel prices, however, is a politically sensitive issue in the country, whose people have endured years of economic crisis.