JAKARTA (Yosefardi) – State oil and gas company PT Pertamina expects the low grade gasoline price could be set lower at Rp7,000 per liter for next month, from current Rp7,600, on the expectation that global crude oil price will fall further to approach US$40 per barrel.
Every US$1 decline per barrel of crude oil, the gasoline price could be cut by Rp50-70 per liter, Pertamina said. But the movement of rupiah against the US dollar would be also a factor.
The government will review the fuel price policy after 2 weeks, instead of per month.
Pertamina also decides to cancel its plan to increase price of 12 kilogram liquefied petroleum gas (LPG) in July this year, including plan to raise the price every three months period.
Pertamina opts to cancel this plan as it expects to book profit of Rp1 trillion from the business of 12 kg LPG this year, thanks to the improving price. Last year, Pertamina suffered Rp5 trillion loss from the said business.