The Strategy Behind Pertalite's Higher Price Than Pertamax

JAKARTA – Debate over fuel prices in Indonesia continues, particularly regarding the price difference between Pertalite (RON 90) and Pertamax (RON 92). Logically, the minimal quality difference should result in linearly proportional prices.

Recently, a viral video on social media showed consumers questioning why non-subsidised Pertalite could be cheaper than Pertamax, which is also non-subsidised.

If compared to foreign markets, such as in Singapore, the price differences for RON 92, RON 95, and RON 98 are indeed slim.

However, in Indonesia, an anomaly arises where the true or economic value of Pertalite is said to reach Rp 16,088, while Pertamax can be priced at Rp 12,300.

So, why can Pertamax, which is of higher quality, be cheaper than the true value of Pertalite, which is ostensibly a subsidised fuel? According to Yuswidjajanto, this is part of a marketing tactic.

The hope is that the competitive price difference will raise awareness among vehicle owners to switch to higher-quality and more environmentally friendly fuels.

“If that migration happens, the fuel subsidy budget should decrease and can be utilised for other more beneficial sectors,” said Yuswidjajanto.

Furthermore, Yuswidjajanto highlighted the classic issue of subsidy distribution in Indonesia, which is still considered not properly targeted because it is attached to commodities, not subjects.

“Subsidies should be attached to people, not goods. Thus, subsidised fuel should not be bought by those who can afford it. Unfortunately, that awareness has not yet grown in our society, so subsidy leakages are still very large,” he stated.

Regarding Pertamax’s current price of around Rp 12,000, he provided an important note on the subsidy status behind that figure.

Yuswidjajanto added that Pertamax can be sold at Rp 12,300 because it is subsidised by Pertamina, not by the state. This differs from Pertalite, which is subsidised by the government.

With this scheme, the state subsidy burden is expected to be reduced while encouraging middle- and upper-class society to use non-subsidised fuel that matches the specifications of modern vehicle engines.