RI vs Malaysia, Which Fuel Price Is More Expensive?

Jakarta, CNBC Indonesia – Fuel oil (BBM) is one of the basic needs for people’s mobility and has a big influence on inflation. Fuel can be said to determine the ‘fate’ of the people of a country and has socio-political considerations that accompany it in determining prices.

The high political element of BBM makes governments in many countries provide subsidies. Through subsidies, fuel can be sold cheaply. The people are happy, the opposition is calm, even though the state budget is absurdly short.

Entering the scope of Southeast Asia, one of the countries that sell cheap fuel is Malaysia. For non-diesel fuel, the neighboring country only knows two types of fuel, namely RON 95 and RON 97.

For the period 16-22 September 2021, the price of RON 95 fuel is priced at MYR 2.05/liter while RON 95 is priced at MYR 2.73/liter. Assuming MYR 1 is equal to Rp 3,402.78, then the price of RON 95 fuel is Rp 6,975.69/liter while RON 97 is Rp 9,289.59/liter.

Where the selling price is cheaper than in the country. Pertamiba gas station RON 97 (Pertamax Turbo) recently increased the price to Rp 12,300/liter.

So why is Malaysia’s fuel price cheaper than Indonesia’s?

Citing Reuters, the Malaysian government estimates that the fuel (and cooking oil) subsidy budget this year could reach MYR 8 billion. The government’s total budget for 2021 is MYR 307.54 billion. So the subsidy budget has a portion of 2.6% of the total state expenditure.

When compared to RI, state expenditure in the 2021 State Revenue and Expenditure Budget (APBN) is IDR 2,750.03 trillion. Meanwhile, the realization of subsidized fuel (and 3 kg LPG) for this year is estimated at Rp 66.94 trillion. The share of fuel subsidies in the APBN is 2.43%, slightly lower than Malaysia.

In addition to subsidies, Indonesia and Malaysia have different statuses for oil affairs. Citing OPEC data, Malaysia’s average oil imports during 2010-2019 were 213,970 barrels/day annually. Meanwhile, Indonesia has much more, namely 334,790 barrels/day every year.

So, this is what makes the cost of fuel procurement in Indonesia more expensive than Malaysia. The imports are already high, the price of oil is getting more expensive so that the selling price of fuel must be more expensive.

As is known, Malaysia’s neighbor country changes fuel prices every week. After the last price is valid for the period 16-22 September 2021. Now, there is a price change for the week ahead.

As for the price of fuel in the next week, starting today, Thursday, September 23 to September 29, 2021, there is an increase of around 2 Malaysian Ringgit (RM) cents for gasoline with an octane rating (RON) of 97 to RM 2.75 or around Rp 9,342.03 (assuming an exchange rate of 1 RM = Rp 3,397.1) per liter from the previous RM 2.73 per liter (Rp 9,274.08).

While in steadfast itself, changes in fuel prices (including non-subsidized prices) before the pandemic were usually carried out every two weeks, but since the pandemic, fuel retailers tend to maintain prices longer.

Here are the latest developments in the comparison of BBM RI vs Malaysia prices:

Malaysia

Following are the details of fuel prices sold in Malaysia as of September 23-29 2021:

– Launching from the Shell website, the selling price in Malaysia:

1. Shell FuelSave 95 RM 2,05 or about Rp 6,964.05 per liter.
2. Shell V-Power 97 RM 2.75 (Rp 9,342.03) per liter from the previous RM 2.73 (Rp 9,274.08) per liter.
3. Shell V-Power Racing RM 3.58 (Rp 12,161.62) per liter from the previous RM 3.56 (Rp 12,093.68) per liter.
4. Shell FuelSave Diesel Euro 2 RM 2,15 (Rp 7.303,77) per liter.
5. Shell FuelSave Diesel Euro 5 RM 2,25 (Rp 7.643,48) per liter.

– Launching from comparehero, Malaysia’s weekly petrol price update September 23 to September 29 2021:

1. The price of RON 95 fuel per liter is RM 2.05 (Rp 6,964.05) per liter.
2. The price of RON 97 fuel per liter is RM 2.75 (Rp 9,342.03) per liter.
3. Diesel/diesel price per liter RM 2.15 (Rp 7,303.77) per liter.

Indonesia

The following is a breakdown of the price of fuel sold in Indonesia:

– Pertamina fuel prices

1. Pertalite RON 90 IDR 7,650 per liter.

2. Pertamax RON 92 Rp. 9,000 per liter.

3. Pertamax Turbo RON 98 Rp 12,300 per liter.

4. Dexlite (CN 51) Rp 9,500 per litre.

5. Pertamina Dex (CN 53) Rp 11,150 per liter.

– Shell in Indonesia

1. Shell Super (RON 92) Rp 11.570 per liter.

2. Shell V Power (RON 95) Rp 12.070 per liter.

3. Shell Diesel (CN 51) Rp 11.190 per liter.

4. Shell V-Power Nitro (RON 98) Rp 12.310 per liter.

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