Increase in electricity tariff and fuel prices become effective

The increase in the electricity tariff by an average of six percent per three months and the rise in fuel prices became effective, respectively on Jan. 1 and Jan. 2, government announced on Wednesday.

According to the new fuel price formula for January, the price of the Premium gasoline was increased from Rp 1,750 per litter to Rp 1,810 per liter, the price of automotive diesel fuel was increased from Rp 1,550 per liter to Rp 1,890, kerosene from Rp 1,530 to Rp 1,970 and industrial diesel fuel to Rp 1,860.

Minister of Energy and Mineral Resources said that beginning this year, the price of all fuel products except the kerosene sold to households and small-scale companies had reached 100 percent of the price level in the international market.

He said that the government had also introduced ceiling and flour prices of the retail of the fuel products to protect consumers from the fluctuation of prices in the international market. The floor and ceiling prices of Premium gasoline are set at Rp 1,650 and Rp 2,100 per letter, gasoline (at Rp 1,800 and Rp 2,200), automotive diesel fuel (Rp 1,800 and Rp 2,100), and industrial diesel fuel (at Rp 1,600 and Rp 2,050).

Meanwhile president director of state owned electricity company PLN, Eddie Widiono, said the electricity tariff had been increased by six percent per three months beginning this year as part of the government?s program to gradually bring the electricity tariff to the commercially acceptable level. Previously, the electricity tariff was far below the production costs.

The first six percent increase will become effective between January 1 and March 31, the second six percent increase between April 1 to June 30, the third six percent increase between July 1 and September 30 and the fourth increase will be effective between October 1 and December 31.

The tariff increase is expected to contribute a 16 percent increase in PLN?s total revenues to Rp 7.5 trillion. (godang)