Singapore joins IEA as SE Asia oil demand set to rise 80% by 2040
Picture for representation REUTERS

In response to the Indonesian Crude Price (ICP), which exceeded the government's assumption, the Energy and Mineral Resources Ministry is set to review the prices of fuel oil after the Idul Fitri celebration.

The review which is expected to affect the subsidised Premium Ron 8 and diesel oil will be done in July as reported by Antara News on Tuesday.

Minister Ignasius Jonan said the ICP averaged at US$49.90 per barrel for the first five months of the year, an expansion by 44.68% of the US$34.49 per barrel in the same corresponding period in 2016. He said, however, the current price tag of fuel oils would reach its economic value should the global crude prices float between US$40 to US$45 per barrel.

Refusing to reveal any details on whether the review will cause a price hike or reduction after the festivities, Ignasius said it was difficult to estimate whether the prices of fuel oil would reduce after the celebrations.

"It is unlikely for the prices of fuel oil to drop as the prices were set as according to when the ICP floated around $40 to $45 per barrel and it currently averages at $49 per barrel," he said, as reported.

Emphasising that an agreement to not raise prices of fuel oils between March and June, Ignasius said the review would come next month depending on the result of the cabinet meeting.

Meanwhile, The Jakarta Post reported that petroleum and chemical distributors PT AKR Corporindo has pledged to keep stock levels of subsidized fuels at sufficient levels while keeping its gas stations open around the clock to meet the rise in demand for fuel during the festivities.

AKR Corporindo director Mery Sofi said the company will maintain its subsidised diesel Solar called the AKRA Sol at a 32-day level while its RON 92 petrol called AKRA 92 will maintain at a 164-day level.

State-owned energy giant, Pertamina pleaded that it would maintain its Premium and Pertamax fuels at a 24-days level during the break season.