Use New Fuel Price Formula, Government Wants More Efficient

INDUSTRY.co.id - Jakarta - The government through the Ministry of Energy and Mineral Resources (ESDM) is increasingly serious to change the formula for calculating the price determination of Fuel Oil (BBM).

Currently the ESDM Ministry intensively evaluates the formula for calculating fuel prices. The study addresses the structure and components of price formation.

With the change of price formation structure, it is expected that fuel price can be more efficient. "The possibility of a new formula, is being evaluated what this BBM looks like. Let it be efficient for the public, "said Deputy Minister of Energy and Mineral Resources, Arcandra Tahar, at the Ministry of Energy and Mineral Resources, Friday (24/11/2017).

The trend of rising world oil prices is one of the reasons the government evaluates the fuel price formula that has been used.

There are several price-forming components that the government will evaluate. So far, the basic price is formed by several components, namely the market index price (HIP), alpha costs consisting of distribution costs, storage costs, and the cost of domestic or imported refineries.

"Again reviewed, being evaluated, look at the formula, for example MOPS. I am learning to be repaired, if there is anything that can be fixed," said Arcandra.

To determine the HIP so far the government uses the price of MOPS. Fluctuations in oil prices will affect the price of MOPS.

"All we see is like the cost of his MOPS distribution, the storage margin if the tax is clear. Cost structure of each component we see," said Arcandra. (De)