Indonesians may have to maximize their spending allocation towards fuel, as popular gasoline variant Pertamax looks set to almost double in price.
According to reports, starting April 1, Pertamax may be priced at IDR16,000 per liter. The 92 octane-rated unleaded fuel is currently priced at IDR9,000 per liter.
In a meeting with state energy firm Pertamina yesterday, The House of Representatives (DPR) agreed to let Pertamax be dictated by international energy prices, which, thanks to recent global tumult, are on the up.
Pertamax is a non-subsidized fuel, but its price has remained at IDR9,000 for two years despite constantly changing external factors. It's well documented that Pertamina has been making a loss out of every liter of Pertamax sold, but analysts suggested that the government has been hesitant to raise its price for political reasons.
Pertamina has yet to announce a new price for Pertamax, but the IDR16,000 figure has been widely reported for the past couple of days.
The news has stoked fears that the price for another popular gasoline variant, the subsidized Pertalite, would also be hiked.
Allaying the concerns, State-owned Enterprises Minister Erick Thohir today heavily implied that Pertalite prices would remain untouched, saying the government is committed to continue subsidizing the 90-octane rated fuel.