DIGIVESTASI - Government Evaluates Fuel Prices for July 2024, Coordinating Minister Airlangga Provides Explanation. The government is currently evaluating fuel prices for July 2024. Usually, changes in fuel prices are announced at the beginning of the month. Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the evaluation of both subsidized and non-subsidized fuel prices is ongoing.

Airlangga could not yet confirm when the prices for energy, such as fuel and electricity, would be held, but the government is continuously monitoring the energy price situation.

"We will monitor it first. If it goes up, it won't be significant," Airlangga said after the inauguration of PT Freeport Indonesia's smelter in the JIIPE Special Economic Zone, Gresik, East Java, on Friday (June 28, 2024).

For the past four months, the government has held non-subsidized fuel prices. Meanwhile, PT Pertamina Patra Niaga is reviewing the adjustment of non-subsidized fuel prices for July.

The government's directive to hold non-subsidized fuel prices ends in June. The determination of changes in the selling prices of non-subsidized fuel should be made by the business entity itself. Pertamina Patra Niaga's Corporate Secretary, Irto Ginting, stated that they are still conducting a comprehensive review. "We are still reviewing (non-subsidized fuel). Let's wait for the review results," Irto told CNBC Indonesia on Wednesday (June 26, 2024).

Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, emphasized that non-subsidized fuel prices must consider the public's purchasing power. "Yes, it may increase, but we also need to look at the public's purchasing power," Arifin said when met at the Directorate General of Oil and Gas, Ministry of ESDM, Jakarta, on Friday (June 28, 2024).

Non-Subsidized Fuel Prices to Be Released to the Market

The House of Representatives (DPR) Commission VII has asked the government to no longer hold the selling prices of non-subsidized fuels like Pertamax at PT Pertamina (Persero) gas stations. Chairman of Commission VII DPR RI, Sugeng Suparwoto, said that holding non-subsidized fuel prices could burden the state-owned enterprise because the selling price is lower than its economic value.

Sugeng believes that non-subsidized fuel products are better left to market mechanisms. "For prices that are indeed non-subsidized like Pertamax, Pertamax Plus, Pertamax Turbo, and so on, let the market mechanism work. No need for government regulation," Sugeng said at the Energy Corner event of CNBC Indonesia on Tuesday (June 25, 2024).

According to Sugeng, non-subsidized fuel prices should be adjusted according to market mechanisms and the initial policy, where non-subsidized fuel prices can be adjusted every month.

This differs from Pertalite (RON 90) fuel, which is given compensation by the government because it is classified as a Special Assignment Fuel Type (JBKP). The current selling price of Pertalite is also far below its economic value. "Because Pertalite, with a selling price of Rp 10,000 (per liter), its production cost is approximately Rp 12,400. Recently, it has been creeping up to around Rp 13,500," Sugeng explained.

Sugeng suggested that the government be realistic and consider raising non-subsidized fuel prices in July 2024.

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