Indonesia plans single fuel price across the country in 2017

Indonesia plans single fuel price across the country in 2017

The Ministry of energy of Indonesia aims to establish single prices for
RON88 gasoline and subsidised diesel across the archipelago as of 1 January
2017. New rules to harmonise fuel prices should be presented in early
November 2016.

Fuel prices currently differ in remote areas, where they can be 15 times
higher than in Jakarta and can reach IDR 60,000 (US$4.6) per litre or even
IDR 100,000 (US$7.7) per litre. The one-price policy is expected to be
covered by state-owned oil company Pertamina and other retailers, without
additional subsidies from the government.

In 2014, the new government reduced fuel subsidies, which were burdening the
state budget (US$23bn in 2013). The reform shifted the weight of gasoline
subsidies to Pertamina and changed diesel subsidies to IDR 1,000 (US$0.08)
per litre.

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Ref:
http://www.enerdata.net/enerdatauk/press-and-publication/energy-news-001/ind
onesia-plans-single-fuel-price-across-country-2017_38758.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com