Fuel Prices

As of July 2024, PT Pertamina (Persero), Indonesia’s state-owned oil and gas company, has announced significant changes in its non-subsidized fuel prices. This adjustment is influenced by global oil price fluctuations and the company’s internal policies to align with the international market standards.

Price Increase Details

  1. Pertamax Turbo: The price for Pertamax Turbo has risen to IDR 14,500 per liter in Jakarta. This reflects an increase of IDR 1,000 from the previous price of IDR 13,500 per liter. Similar increments are seen across various provinces, with prices ranging from IDR 13,750 to IDR 14,000 in regions like North Sumatra and Riau.
  2. Dexlite: Dexlite prices have also seen an increment, now priced at IDR 12,950 per liter in Jakarta, up from IDR 12,150. Other regions report prices ranging from IDR 12,400 to IDR 12,650 per liter.
  3. Pertamina Dex: Pertamina Dex, a high-quality diesel variant, now costs IDR 13,700 per liter in Jakarta, up from IDR 13,200. Prices in other provinces vary slightly but remain within the same range.

These adjustments were necessary due to the rising international crude oil prices, which have significantly impacted the operational costs of fuel production and distribution​​.

Subsidized Fuels

For widely used subsidized fuels such as Pertalite and Pertamax, there have been no changes in prices. Pertamina has maintained these prices to ensure affordability for the general public, aligning with the government’s directives to keep essential fuel prices stable​​.

Shell’s Fuel Price Movements

Shell, one of the leading private oil companies operating in Indonesia, has also adjusted its fuel prices in response to the global market dynamics and competitive pricing strategies. As of July 2024, Shell’s pricing strategy focuses on maintaining a balance between competitiveness and profitability.

Current Prices

  1. Shell Super: The current price for Shell Super (RON 92) is IDR 14,150 per liter, slightly higher than Pertamina’s Pertamax.
  2. Shell V-Power: Priced at IDR 14,850 per liter, Shell V-Power offers higher octane levels (RON 95), catering to high-performance vehicles.
  3. Shell Diesel: Shell Diesel is priced at IDR 13,800 per liter, providing a competitive option compared to Pertamina’s Dexlite and Dex variants.

These prices reflect Shell’s commitment to providing high-quality fuel options while remaining competitive in the Indonesian market​​.

Factors Influencing Price Changes

Several factors contribute to the recent adjustments in fuel prices by Pertamina and Shell:

  1. Global Crude Oil Prices: The international price of crude oil has seen significant volatility, affecting the cost of fuel production. As of June 2024, crude oil prices hovered around USD 85 per barrel, marking a substantial increase from previous months​​.
  2. Exchange Rates: The exchange rate between the Indonesian Rupiah (IDR) and the US Dollar (USD) plays a crucial role. A weaker Rupiah increases the cost of importing crude oil, necessitating price adjustments to maintain profitability.
  3. Government Policies: The Indonesian government’s policies on fuel subsidies and price controls directly impact the pricing strategies of both Pertamina and Shell. While Pertamina follows government directives to stabilize subsidized fuel prices, Shell adapts its prices based on market conditions and competitive factors.
  4. Operational Costs: Rising operational costs, including transportation, refining, and distribution, also contribute to the need for price adjustments. Both companies strive to balance these costs while providing competitive pricing to consumers​.

Consumer Impact

The recent price hikes in non-subsidized fuel types have a notable impact on consumers, especially those who rely on higher-octane fuels for their vehicles. The increase in fuel prices can lead to higher transportation costs and potentially influence the prices of goods and services across various sectors. However, the stable prices of subsidized fuels help mitigate the overall economic impact on lower and middle-income households.

Future Outlook

Looking ahead, fuel prices in Indonesia are expected to remain influenced by global oil market trends, exchange rate fluctuations, and government policies. Both Pertamina and Shell will continue to monitor these factors closely to make necessary adjustments while striving to maintain competitive pricing and ensure the availability of high-quality fuel options for Indonesian consumers.

For detailed and updated information on fuel prices, consumers can visit the official websites of Pertamina and Shell or use their respective mobile applications.

In conclusion, the recent adjustments in fuel prices by Pertamina and Shell reflect the dynamic nature of the global oil market and the companies’ efforts to balance operational costs and competitive pricing. While consumers may experience some financial impact due to these changes, the continued stability of subsidized fuel prices offers some relief.