Petrol pricing

[harryopal1]

With the weakening rupiah it must be a major concern at the effect on fuel costs. Indonesians are presently paying almost half the Australian fuel prices which have risen by about 20% in the past year. Mind you taxes account for about 36 cents a litre in Australia. The Morrison government is now talking about getting tough with the petroleum industry and breaking up the biggest companies.

This is just hot air. As I recall for the past 45 years it has been a popular political drum to beat with governments forever talking about the petroleum industry gouging consumers. A sore point has been the way at the pump prices leap every time there is a holiday period or long weekend, Yet despite innumerable assertions about getting tough our governments have been, as the Chinese might say, paper tigers when it comes to actually doing anything.

With all that I can imagine a serious reaction were prices to suddenly leap here in Indonesia where so many people just get by. Anyone familiar with the local industry and government policies who can hazard a guess as to how long Indonesians can enjoy the relatively low prices they are paying?

 

[El_Goretto]

I have no idea, sorry.

But on a somewhat related note, I've noticed a few BP petrol stations under construction.

Were they present in other parts of Indonesia or are they a new player here?

 

[Jaime C]

I have no idea, sorry.

But on a somewhat related note, I've noticed a few BP petrol stations under construction.

Were they present in other parts of Indonesia or are they a new player here?

https://asia.nikkei.com/Business/BP-taps-local-distributor-AKR-to-open-Indonesian-gas-stations

 

[snpark]

Since they all sell the same product I guess it is just a marketing thing to make gullible people pay extra because they are buying from BP (same as Shell) so they assume it might be better quality premium petrol

Bit like buying your noodles from Marks and Spencers
They all come from the same Pasta tree in Italy

 

[jstar]

Shell admitted at the time they bought at Pertamina. But also stated it was better because of their additives. (Also upping the octane.)

Strange that BP does not invest more in CNG stations though. (Or to push it; even hydrogen.) Indonesia is one of the larger LNG exporters after Australia etc. But even with a huge surplus on natural gas they still can't fulfill their own needs.

 

[jstar]

On Harry's question: I remember the last increase has been in the 2015/2016 timeframe. Hell broke loose. And with next year being an election year, I really don't see anybody in his right mind proposing a price increase, decrease the subsidizing of Premium or even abrogate that type of (somewhat inferior because of its extremely low octane level) gasoline.

Perhaps the contrary, this year there have been regulations signed that force Pertamina to provide Premium in certain regions. https://m.detik.com/finance/energi/d-4267221/premium-di-jawa-dan-bali-sempat-langka

 

[Minuteman]

Total tried it here and went tits-up. Shell stations are either closed or very empty of customers. So, just what does BP think they have that will allow them to prosper??