On December 8, 2023, the Minister of Energy and Mineral Resources (the "MEMR") issued Decree No. 439.K/MG.01/MEM.M/2023 of 2023 on the Basic Price Formula for Certain Types of Fuel Oil ("Decree 439/2023"). Decree 439/2023 revokes the MEMR Decree No. 148 K/12/MEM/2020 of 2020 on the Basic Price Formula for Certain Types of Fuel Oil and Specific Types of Fuel Oil for Assignments ("Decree 148/2020").
Under Decree 439/2023, it is stipulated that the basic price formula for certain types of fuel oil determined by the MEMR is as follows:
- For Kerosene with a formula of 102.49% (one hundred two point forty nine percent) Kerosene Market Index Price + Rp263.00/liter (two hundred sixty three Rupiah per liter); and
- For Gas Oil with a formula of 100% (one hundred percent) Gas Oil Market Index Price + Rp868.00/liter (eight hundred sixty eight Rupiah per liter).
The above basic price formula shall be used as a basis to determine the basic price of every liter of certain types of fuel oil. Decree 439/2023 became effective as of December 8, 2023 and the prices may be evaluated in due course.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
