Pertamina Lowers Fuel Oil Prices for Industries by 4-15%

Strategic Insights -

Pertamina, Indonesia's state-owned oil and gas company, has announced a reduction in prices for non-subsidized fuel oils for industries effective October 2006. The price cuts, ranging from 4 to 15%, aim to ease the financial burden on industries amid declining international crude oil prices and a strengthening rupiah exchange rate. This move is expected to have a positive impact on Indonesia's economy, particularly in the industrial sector.

Key Takeaways:

  • Pertamina reduced fuel oil prices for industries by 4-15% in October 2006.
  • Gasoline prices were lowered by 15.2% to Rp5,393 (US$0.58) per liter.
  • Kerosene prices decreased by 6.9% to Rp6,039 per liter.
  • High-speed diesel prices dropped by 9.2% to Rp5,709 per liter.
  • Marine diesel fuel prices were reduced by 4% to Rp5,797 per liter.
  • Marine fuel oil prices were lowered by 13.7% to Rp3,245 per liter.
  • The price cuts were based on a decline in international crude oil prices (3-15% lower in September) and a strengthening rupiah exchange rate (0.16% stronger against the US dollar).
  • Subsidized gasoline and high-speed diesel prices for public transportation remained unchanged (Rp4,500 per liter and Rp4,300 per liter, respectively).
  • Subsidized kerosene prices for the public and small industries stood at Rp2,000 per liter.

Statistics:

  • Decrease in international crude oil prices: 3-15% (September 2006 compared to the previous month).
  • Strengthening rupiah exchange rate: 0.16% (against the US dollar).
  • Fuel oil prices for industries: lowered by 4-15%.
  • Gasoline: Rp5,393 (US$0.58) per liter (down 15.2%).
  • Kerosene: Rp6,039 per liter (down 6.9%).
  • High-speed diesel: Rp5,709 per liter (down 9.2%).
  • Marine diesel fuel: Rp5,797 per liter (down 4%).
  • Marine fuel oil: Rp3,245 per liter (down 13.7%).

Sources:

  • ANTARA (October 2006)
  • PT Pertamina (Press Release, October 2006)