REPUBLIKA.CO.ID, JAKARTA -- The government has decided to maintain the price of automotive diesel oil (ADO) at Rp6,400 per liter after the oil price began to rise lately.
Acting Director General of oil and Gas I Gusti Nyoman Wiratmadja said the government could not accept the request of the Commission VII of the Parliament to cut the ADO price.
"The prices of oil in the world market tend to rise lately, therefore, we could not cut the price as requested by the Commission VII," I Gusti Nyoman said here on Wednesday.
He said the market index price for ADO (MOPS gas oil) on February 13 rose to an average of US$73 per barrel.
On the average the price of MOPS of gas oil at present was 5.7 percent higher than the level when the Commission VII discussed the price on February 3, 2015, he said.
The MOPS of gas oil in the period from 25 December 2014 to 16 January 2015 as the reference of Rp6,400 per liter, was US$64.86 per barrel.
"The price of oil in the world market showed a rising trend," Wiratmadja said.
The decision to maintain the price at Rp6,400 per liter for ADO is based on consideration price and logistics stability as long as the price difference is not too significant.
The price of other oil fuels such as kerosene are also maintained at Rp2,500 per liter and premium gasoline Rp6,600 per liter for Java and Bali.
Earlier, in line with the recommendation of the the Commission VII on February 3 in 2015, the government planned to cut the price of ADO to Rp6,200 per liter by mid February, 2015.
However, the government decided to maintain the price at Rp6,400 per liter with the rising trend of oil price in the world market lately.
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