[Kabar-indonesia] Pertamina Raises Fuel Prices for Industries 5.3% in July

[Joyo at aol.com]

Bloomberg 
July 1, 2006

Pertamina Raises Fuel Prices for Industries 5.3% in July

JAKARTA: PT Pertamina, Indonesia's state-owned oil company, will raise prices 
of oil products sold to miners and factories by as much as 5.3 percent in 
July, as the weakening rupiah rate makes it more expensive to import the fuel.

Gasoline prices will climb to Rp 6,502 a liter in July from Rp 6,174 a liter 
in June, Pertamina said in a statement.

Diesel prices will rise 5.09 percent and kerosene 3.08 percent, the statement 
said. The new prices take effect Saturday in the country, except for South 
Sulawesi, Papua and East Nusa Tenggara provinces.

Indonesia imports a third of its fuel demand as its daily refining capacity 
of 1.06 million barrels a day is insufficient to meet demand. Pertamina uses 
fuel prices in Singapore, assessed by oil-pricing service Platts between the 
15th of every month, asthe benchmark to determine fuel prices for industries.

Pertamina will sell kerosene to manufacturers and mining companies at Rp 
6,373 a liter starting July 1 from 6,181 Rp rupiah a liter in June. Diesel for 
transportation purposes will retail at Rp 6,609 a liter from Rp 6,288 a liter, 
including a taxfor fuel used in vehicles, and at Rp 6,321 a liter from Rp 6,014 
a liter for manufacturing purposes.

Pertamina raised prices for marine diesel 4.78 percent to Rp 6,065 a liter 
for July from Rp 5,788 a liter in June. Fuel oil will be sold at Rp 3,760 a 
liter from Rp 3,745 a liter.

The Indonesian government removed subsidies for fuel used by industries in 
July last year as soaring global crude prices made state subsidy payments 
unaffordable . Retail prices for individual buyers are subsidized and controlled by 
the state.

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Joyo Indonesia News Service
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