Government suggests Pertamax subsidies if Premium and Pertalite are phased out

JAKARTA, KOMPAS.com – Recently there has been a speech about the elimination of Premium fuel oil and Pertalite (BBM) owned by PT Pertamina (Persero).

The plan resurfaced after PT Pertamina (Persero) CEO Nicke Widyawati said that the simplification of fuel products was in line with the provisions of the Ministry of Environment and Forest Regulation (Permen LHK) n. 20 of 2019, which required a minimum standard of 91 RON.

However, if the plan is to be carried out, the government is advised to divert the Premium and Pertalite subsidies to BBM with a higher RON such as Pertamax.

Also Read: Pertamina Evaluated to Complete Factory Development Before Eliminating Premium and Pertalite

This should be done to maintain the purchasing power of people, especially those who previously used Premium and Pertalite.

“If necessary, in the future, this high RON BBM should receive subsidies that can at least reduce the burden on the community,” Energy Watch CEO Mamit Setiawan told Kompas.com on Thursday (9/4 / 2020).

Additionally, Mamit evaluated that Pertamine could phase out RON fuel below 91.

“If Pertalite cannot (be removed), then Premium will be removed first,” he said.

Also read: The average economy is falling, is it necessary to postpone the elimination of Premium and Pertalite?

However, seeing the situation of the national economy that is being greatly affected by the Covid-19 pandemic, Mamit assessed that the government and Pertamina should also review the plan.

In view of the current situation of the society, it is said that the government should postpone the implementation of the elimination of Premium and Pertalite.

“Given the economic conditions of the people affected by Covid-19, I don’t think our society is fully prepared for that,” Mamit said.

Also read: National Customer Day, PLN offers a 75% discount when adding energy to MSMEs