Pertamina Still Selling Pertamax Loss, The Price Increase of Pertamax Turbo et al. Doesn’t Cover It? page all

JAKARTA, KOMPAS.com – Pertamina mentions the increase in fuel prices Pertamax Turbo, Pertamina Dex, and Dexlite cannot make up for Pertamina’s losses on the sale of Pertamax fuel which is still below the economic price.

Corporate Secretary of PT Pertamina Patra Niaga Irto Ginting said this was because the loss from the sale of Pertamax was very large.

Meanwhile, the type of BBM Pertamax TurboPertamina Dex, and Dexlite only 5 percent of the total national fuel consumption, while 95 percent of consumption comes from Pertamax, Pertalite, and Solar.

Also read: Back Up, This is the Latest Price of Pertamax Turbo, Pertamina Dex, and Dexlite

So even though Pertamina raised the prices of the 3 types of non-subsidized fuel, it still could not cover Pertamina’s overall losses in selling Pertamax.

“It’s not closed, the loss of Pertamax is very large. We have not released the figures (the loss on Pertamax sales), it is very large,” he said when contacted Kompas.com, Wednesday (3/8/2022).

Is that true?

Reforminer Institute Executive Director Komaidi Notonegoro agrees with this statement because the volume of Special Assignment Fuel Types (JBKP) and subsidies is far more than the volume of non-subsidized fuel.

Thus, even though Pertamina raises the price of Pertamax Turbo et al, of course it cannot cover losses from the sale of Pertamax.

“I think it is. Pertalite alone is in the range of 23-30 million kiloliters (KL). Solar is 15-17 million KL. While the total non-subsidized is only around 7 million KL,” he told Kompas.com, Thursday (4/8/2022).

However, the Energy Economics Observer at Gadjah Mada University, Fahmy Radhi, said that the increase in the price of Pertamax Turbo, Pertamina Dex, and Dexlite could not reduce Pertamina’s losses for the sale of Pertamax.

However, the increase in the price of these 3 types of non-subsidized fuel can reduce the burden on the State Revenue and Expenditure Budget (APBN) to compensate Pertamina.

Thus, even though Pertamina is currently selling at a loss for Pertamax-type fuel, the loss due to fluctuations in oil prices will be compensated by the government.

“The reason is that Pertamina will be reimbursed through APBN funds for compensation if Pertamina sells fuel below the economic price,” explained Fahmy to Kompas.com, Wednesday (4/8/2022).

Also read: The quota of subsidized fuel is running low, could there be a shortage of diesel and pertalite?

However, he continued, compensation for the sale and loss due to fluctuations in oil prices could not be carried out immediately in that year.

The new government can allocate compensation funds from the APBN in the following fiscal year. So that until the time is allocated, Pertamina must bear it.

“The only problem is that compensation to Pertamina will only be paid in the next year’s APBN budget. If the fuel price is according to the economic price, the state does not need to allocate compensation funds from the APBN,” said Fahmy.

For information, since April 1, Pertamina is still holding the price of Pertamax at the level of Rp 12,500-13,000 per liter. The sale of Pertamax received a subsidy from the government of Rp. 3,500 per liter.

Also read: World Oil Prices Drop, but Pertamina Raises Non-subsidized Fuel Prices

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