Pertamina Ready to Shed 7.2% Off Diesel Price
Bandar Lampung. State energy company Pertamina has given the government its recommendation of cutting the price of diesel fuel by up to 7.2 percent and keep the price of low-octane gasoline Premium intact.
President Joko Widodo asked Pertamina last week to adjust fuel prices in a bid to boost the public's purchasing power and reduce costs for businesses amid a slowing economy.
Pertamina suggested to cut the cost of diesel by between Rp 300 and Rp 500 (2 cents-3 cents) a liter, said M. Iskandar, Pertamina senior vice president for marketing and distribution.
The company is now selling diesel at Rp 6,900 a liter with a government subsidy of Rp 1,000 for every liter sold.
"It would be better to reduce the price of diesel to stimulate the economy," Iskandar said.
He noted that 90 percent of diesel users are logistics and transport companies.
"The cost of Premium should not be reduced; this is to encourage consumers to be efficient," he said, adding that at Rp 7,400 a liter, Pertamina has been selling its low-octane gasoline at a loss this year.
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