Since the beginning of 2022, global oil prices have surged, exceeding US$100 per barrel and reaching the highest level in 14 years.
This increase in global oil prices prompted the Indonesian government to raise the price of subsidized fuel (BBM), including Pertalite, which increased from Rp7,650/liter to Rp10,000/liter starting in early September 2022.
Pertalite consumption has been steadily increasing over the past eight years. Consumption only slightly decreased in 2020 at the beginning of the pandemic. However, it rebounded in 2021, as shown in the graph.
In 2022, Pertalite consumption continued to rise. According to a report by the BPH Migas (Upstream Oil and Gas Regulatory Agency), by the end of September 2022, Pertalite consumption had reached 21.97 million kiloliters (kl), or approximately 95% of this year's quota of 23.05 million kl.
To avoid fuel shortages by the end of the year, the government added 6.86 million kl to the Pertalite quota starting in early October 2022. Therefore, Pertalite consumption for 2022 is projected to reach 29.91 million kl.
Compared to 2015, Pertalite consumption this year has increased by more than 7,000%.
"With the improving economy post-Covid-19, consumption of both Solar and Pertalite fuel has surged. Without the increase, the quota for Pertalite would have been exhausted by mid-October 2022," said BPH Migas Head Erika Retnowati in a press release on Monday (3/10/2022).
BPH Migas also emphasized that this additional quota for subsidized fuel is primarily intended for low-income communities.
"Those who are able should use non-subsidized fuel. Besides improving engine performance, the most important thing is that subsidies are given to those who are entitled to them," said Erika.