When World Oil Prices Dropped, Why didn’t Pertamax Prices fall?

KOMPAS.com – PT Pertamina (Persero) officially raised the price of non-subsidized fuel oil (BBM) Pertamax (RON 92), effective as of today, Friday, April 1, 2022, at 00:00 local time.

Pertamax Price differentiated by regional marketing. Referring to the company’s official announcement, Pertamax price As of April 1, 2022, this has increased to around Rp. 12,500 to Rp. 13,500 per liter from the previous Rp. 9,000 to Rp. 9,400 per liter.

According to Pertamina’s management, the increase in Pertamax’s price of around Rp. 3,500 – Rp. 4,000 per liter was adjusted to the surge in world crude oil prices. They claim that the price increase is still around Rp. 3,500 lower than the economy.

In the midst of the increase in Pertamax, there are concerns that vehicle owners who have been loyal to using Pertamax will switch to consuming Pertalite.

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In addition, in contrast to Pertalite, which is a government-assigned fuel, the price of Pertamax is more flexible because it can be adjusted according to the fluctuations in world crude oil prices.

Then what about the descent? world oil prices like in 2020 automatically making the price of fuel sold in Indonesia go down?

In fact, the price of fuel in Indonesia is relatively continuing to increase and it is difficult to go back down even though the price of crude oil has decreased drastically.

Crude oil price in 2020

Reported from the news Kompas.com 14 April 2020scans outbreaks of corona virus or Covid-19, making world demand for oil drop drastically.

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This condition makes world oil prices fall to below 30 US dollars per barrel. Domestic fuel demand has also declined, given the imposition of restrictions that make more vehicles park at home.

The decline in fuel consumption was also significantly contributed by the policy of working from home or working from home work from home (WFH).

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