Government to review fuel oil prices after Lebaran

The Energy and Mineral Resources Ministry is set to evaluate the prices of fuel oils, particularly subsidized premium gasoline and diesel oil, after the post-fasting Idul Fitri festivities.

"The prices of Premium Ron 88 and diesel oil will be reviewed in July after Lebaran," Energy and Mineral Resources Minister Ignasius Jonan said here on Monday.

He made the remarks in response to the Indonesian Crude Price (ICP), which has exceeded the governments assumption. 

In the first five months of this year, ICP averaged US$49.9 per barrel, up by 44.68 percent from $34.49 per barrel in the same period last year.

However, the current price of fuel oils will reach its economic value if the global crude price stands at $40 to $45 per barrel.

The minister refused to divulge details on whether the prices of fuel oils will be raised or adjusted after the Lebaran 2017 festivities. However, it is difficult for the prices of fuel oils to fall after Lebaran. 

"It is likely difficult (for the prices of fuel oils) to fall as the prices were set when ICP stood at $40-$45 per barrel and it currently averages $49 per barrel," he noted.

He remarked that there has been agreement not to raise the prices of fuel oils from March to June. Hence, they will be reviewed after June.

However, all of these will still depend on the result of a cabinet meeting, he added.(*)