Premium and Solar Fuel Prices Remain Stable, Pertamina's Profit Decreases by 30%

PT Pertamina Persero has released its Q3 2017 financial performance. From January to September this year, the state-owned oil company's profit shrank by 29.7 percent to US$1.99 billion, or Rp 26.87 trillion (using an exchange rate of Rp 13,500 per US dollar), compared to the same period the previous year. The lack of price adjustments since the beginning of the year for certain types of fuel, namely subsidized premium gasoline and diesel, is the cause of Pertamina's reduced profits.

According to Pertamina's Finance Director, Arief Budiman, the current price of premium gasoline is set at Rp 6,450 per liter. However, its economic price should be Rp 7,450 per liter, resulting in a potential revenue loss of Rp 1,000 per liter. Similarly, subsidized diesel is sold at Rp 5,150 per liter, while the formula-based price is Rp 6,500 per liter, resulting in a price difference of Rp 1,350 per liter. This is what caused Pertamina's significant profit decline in the first nine months of 2017.

Meanwhile, Pertamina's revenue for the January-September 2017 period still recorded a growth of 19.8 percent, reaching US$31.38 billion from US$26.2 billion in the same period of the previous year.