The Indonesian state-owned oil and gas corporation Pertamina increased fuel prices starting from October 1st. As a result of this adjustment, Pertamax gasoline rose from 13,300 to 14,000 rupiahs, Pertamax Turbo from 15,900 to 16,600, diesel Dexlite from 16,350 to 17,200, Dex from 16,900 to 17,900, and environmentally friendly fuel Pertamax Green from 15,000 to 16,000 rupiahs per liter.
The price changes will only affect non-subsidized government gasoline, meaning the cost of the cheapest Pertalite fuel will remain unchanged. The cost of gasoline has varied across different regions of Indonesia, and you can find the complete list here.
"PT Pertamina adjusted the price of general-purpose fuel in line with the ministerial decree on the basic price formula for calculating retail selling prices of general types of fuel, gasoline, and diesel fuel sold through public gas stations," said Pertamina in a statement.
Certainly, the rise in fuel prices not only makes travel on two and four wheels slightly more expensive but also directly impacts the cost of goods. Now, a slight increase in prices for almost all products and services in the Indonesian market can be expected.
Ali Achmad Achyak, the Executive Director of the Center for Energy Security Studies (CESS), stated that the selling prices of non-subsidized fuel are influenced by movements in global crude oil prices exceeding $90 per barrel, as pricing must adapt to market mechanisms. The basic components of fuel prices include acquisition, storage, and transportation costs, as well as projected profits.
Considering that a significant portion of local oil products is imported, internal non-subsidized fuel prices automatically follow global market prices. "Direct internal prices follow the average fuel cost on Singapore Platts," he said.
Naturally, if global prices increase, local oil companies will respond by adjusting prices for their products to avoid losses. Moreover, there is a possibility that this won't be the last adjustment, as global oil prices have been rising since July and show no signs of stopping.