Gov’t Stipulates New Formula on Fuel Prices
REINHA.com – The Indonesian Government stipulates a new basic price formula in calculating the retail price of fuel which distributed through public gas stations/boat gas stations, as a guideline for business entities to determine the retail price.
The stipulation is carried out by implementing the provisions of Article 4 of Minister of Energy and Mineral Resources Regulation Number 34 of 2018 on the Fifth Amendment to Minister of Energy and Mineral Resources Regulation Number 39 of 2014 on Calculation of Retail Price of Fuel, and Minister of Energy and Mineral Resources Decree Number 19 K/10/MEM/2019 on Basic Price Formula for Calculating Retail Price for Gasoline and Solar Which Distributed Through Public Gas Stations and/or Boat Gas Stations, which are effective since 1 February 2019. It is regulated as well that the prices of fuel determined by Business Entities must be reported to the Government.
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“The policies are made to protect consumers as well as business entities to compete in a healthy and fair manner,” Director General of Oil and Gas of the Ministry Djoko Siswanto said in his press statement at Jakarta (10/2).
Moreover, Djoko said that the retail selling price is calculated using the formula of Retail Price = MOPS+constants+Margin+VAT(10 percent)+fuel tax (in accordance with provincial regulations), where constants consist of acquisition costs excluding product prices, storage costs, and distribution costs. The MOPS and the constants used are in accordance with the provisions of the decree.
Stipulation of fuel retail selling price by business entities also refers to the price floors with 5 percent of margin calculation of the base price and price ceilings with10% of margin calculation of the base price.
Thus, the Business Entities can determine the retail price of fuels within the range. “So that there are no longer business entities that sell overpriced fuels. There price ceilings is aimed at protecting the consumers too,” Djoko added.
The state-owned oil and gas company PT Pertamina has lowered their fuel price since 10 February 2019 midnight.
Several other private gas stations have also lowered their prices, such as Shell, Total, Vivo, and Aneka Petroindo Raya, while several others like AKR, Exxon and Garuda Mas Energy have not reduced their prices since their prices still in accordance with the decree.
With the decree issuance, hopefully the fuel prices will be more reasonable and fairer for business entities as well as the public.
# Gov’t Stipulates New Formula on Fuel Prices
