The COVID-19 pandemic has brought global oil prices to the lowest level due to the drop in global oil demand. On 21 April, the price of the U.S crude oil hit below zero — the first in history amid the commodity’s oversupply during the global health crisis.
Several countries in Southeast Asia have lowered their fuel price for RON-95 such as Pertamax in Indonesia. However, Indonesia refused to decrease its oil price, given that the situation remains unstable.
“The government still maintains the prices because global oil prices and the exchange rates are still unstable and may drop,” said Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, in a meeting with the House of Representatives (DPR) Commission VII on Monday (4 May).
The minister added that there are eight types of fuels marketed in Indonesia. Only four to five types of fuel are sold in other Southeast Asian countries. The Indonesian government has provided subsidies for solar and gasoline.
Prices of RON-95 in other ASEAN member countries
Singapore has the highest price of RON-95 at Rp 20,693 per litre, data from globalpetrolprices.com revealed. Laos came second at Rp 16,352 per litre, and Thailand at Rp 11,684 per litre.
Malaysia sells RON-95 cheaper than Indonesia at Rp 4,381 per litre, followed by Myanmar at Rp 5,478 per litre and Vietnam at Rp 7,582. Indonesia’s price of RON-95 stands at Rp 9,125 per litre.
The decision not to lower oil prices is the right one, says expert
Researcher at Indef Abra P.G Talatto on Tuesday (5 May) lauded the Indonesian government’s decision not to reduce oil prices, adding that it was the right decision given the ups and downs of the global oil prices.
Oil prices rose again on Tuesday (5 May), sparking optimism following the ease of lockdowns in some parts of the world.
The U.S West Texas Intermediate surged 20.45 per cent to $ 24.56 per barrel. International benchmark Brent crude surged 13.86 per cent to $ 30.97 per barrel, CNBC reported.