Indonesian gasoline of Premium and Diesel Prices Will Go Down Again

Indonesian gasoline of Premium and Diesel Prices Will Go Down Again

JPNN - Continuously declining world oil prices makes the calculation of the economic price of gasoline and diesel fuel types changed. Coordinating Minister for the Economy Djalil said the government continues to monitor the movement of world oil prices are in a downtrend.

The price that will be the reference for the government to set the selling price of gasoline and diesel.

"If you look at world oil prices (which is down), then we will be down again in fuel prices," he said when met after a cabinet meeting at the Presidential Office yesterday (7/1).

      

As is known, since January 1, 2015, the government changed the policy of subsidy. Premium fuel sold in accordance with the economic price of Rp 7,600 per liter, while diesel fuel economic price of Rp 8,250 per liter, still subsidized Rp 1,000 per liter, so that is sold to the public at a price of Rp 7,250 per liter.

      

The main variables that affect the calculation of the economic price is the price of oil. Since most gasoline and diesel to be imported, then the value of the rupiah against the US dollar also influential.

Premium economic price of Rp 7,600 and Rp 8,250 per liter of diesel fuel in force January 1, determined by the world oil price assumption of the period 25 November to 24 December, 2014.

      

Sofyan explained, gasoline and diesel prices in February 2015 period will be determined based on the movement of world oil prices throughout December 25 to January 24, 2015. In fact, until yesterday, crude oil prices fell below $ 50 per barrel and still has the potential to go down.

      

Therefore, the economic price of gasoline and diesel were certainly down. How likely decline in the price of gasoline and diesel? "Later, waiting for the end of the month, we announced again," he said.

      

Finance Minister Bambang Brodjonegoro added, the potential drop in the price of gasoline and diesel by following the oil price is open. However, the calculation of the selling price of gasoline and diesel will also consider the movement of the exchange rate, which in early January showed weakening against the US dollar.

With these factors, the decline in the price of gasoline and diesel will not be too big. "Later, we combined the movement of world oil and dollars," he said.

      

As an illustration, the buying rate is based on data from Bank Indonesia during 25 November to 24 December 2014 became the basis for calculating the price of gasoline and diesel in January, the average is in the range of 12,400 USD. While the exchange rate of the period December 25, 2014 until January 7, 2015 is in the range of 12372-12668 per USD.

      

Prediction back downs Premium and Diesel also emerged from the Chairman of the Governance Reform Gas (RTKM) Faisal Basri. He agreed that the new price will appear for the price of February. The reason is also because of crude oil continues to sag.

      

"Now, WTI oil has been USD 47.99 per barrel. It was 09:00 in the morning (yesterday, ed). Crazy, keeps costs down," he said at the Ministry of Energy and Mineral Resources. The more cheap oil, further Faisal, means reducing the burden of procurement. So, there is no reason to maintain the current.

      

Without subsidies, especially fuel price premium would follow the market mechanism. When oil prices continue to decline, then the selling price in the market also fell. Likewise, when the price of oil to be expensive, low-octane fuel that go up.

      

Predictions, the price reduction will last long. During 2015, oil prices will not rebound to above USD 70 per barrel. That is, the government's decision not to provide subsidy on Premium appropriate. The selling price in the community called still okay in the bag buyers.

      

"Interestingly, there is a belief that this low price for a long time. At least, this year was under $ 70. Logically, it does not need subsidies," he said.

      

Beyond that, he also mentioned the opportunities provided by the government to PT Pertamina to eliminate Premium within two years. According to him, it can be accelerated due to the time given by the government is forever. Thus, the possibility is still open soon disappear.

      

RTKM team itself remains encourage product RON 88 it could disappear within six months. One way is to press supay no new contracts for oil purchase Premium. "We must push faster. If we wait two years, complicated," he said.