Pertamax Price Increase Discourse Does Not Cause Inflation

Pertalite Fuel

World oil prices that continue to rise and tend to be unstable have caused several countries to adjust their fuel prices. In Indonesia, several parties have proposed that Pertamina increase the price of Pertamax fuel oil (BBM).

Although the price of Pertamax fuel oil will increase, this will not cause inflation in Indonesia. Why does this happen?

Energy Watch Executive Director Mamit Setiawan said, if the price of Pertamax was increased, the impact on inflation would not be felt because the number of users was not as large as other fuels such as Pertalite.

“Considering that Pertamax is segmented, it should not have a significant impact on inflation. I think it is still safe for inflation, even though currently Pertamax consumption is 12% of total national consumption,” said Mamit, Thursday (24/3/2022).

Furthermore, Mamit emphasized that Pertamax is included in general fuel, referring to Presidential Decree No. 119 of 2014. General fuel prices vary according to economic prices. The ‘position’ of Pertamax is actually the same as Pertamax Turbo, Pertamina Dex, and Dexlite.

“Because the entry into general fuel, so the same (price determination),” he said.

General fuel, he said, does not receive subsidies from the government. If Pertamax is sold below the economic value, it means that Pertamina bears the loss because it does not receive compensation from the government.

According to him, if the price of Pertamax goes up and people object, there will still be the cheaper fuel. “People can use this type of fuel,” he said.

Furthermore, although several parties asked the government to adjust the price of Pertamax, they still have not adjusted the fuel price. Until now, Pertamax is still sold for Rp. 9,000 per liter on the island of Java.

The increase in world oil prices has pushed up the economic price of fuel oil (BBM) sold by PT Pertamina, including the Pertamax type.