Biodiesel prices down, says ESDM Minister

Jakarta (ANTARA) – The Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of New Energy, Renewable and Energy Conservation (EBTKE), has set the price of the Biofuel Market Index (HIP BBN) for the month of May at Rp39 per liter, a decline from the price in April.

“This price determination will take effect from May 1, 2019,” said the Head of the Communication, Public Information Service and Cooperation (KLIK), Ministry of Energy and Mineral Resources, at the Supreme Court in Jakarta on Monday.

Based on data compiled by Antara in Jakarta from the website of the Ministry of Energy and Mineral Resources, the price of biodiesel is set at Rp. 7,348 / liter and bioethanol at Rp. 10,195 / liter.

Compared to the prices in April 2019, biodiesel has decreased by Rp. 39 / liter from the previous Rp. 7,387 / liter, while bioethanol prices saw a slight increase of Rp. 17 / liter from the previous price of Rp. 10,178 / liter.

Agung added that the price of biofuel was also used in the implementation of the Mandatory B-20 and was valid for mixing diesel oil for certain types of fuel oil (BBM) and general types of fuel.

The decline in the price of biodiesel was motivated by the decline in the average price of crude palm oil (CPO) Kharisma Marketing Bersama (KPB) from March 15 to April 14, 2019, which was Rp. 7,026 / kg from the previous price of Rp7,078 / kg.

The price of HIP BBN for this kind of Biodiesel is calculated using the HIP formula, (Average CPO of KPB + 100 USD / ton) x 870 kg / m3 + Cost of Transport. The amount of freight in the formula for calculating biodiesel prices follows the provisions of the Minister of Energy and Mineral Resources Decree No. 350 K / 12 / DJE / 2018.

The Bioethanol type saw an increase in price after it was calculated based on the formula, (Average KPB sugarcane drops for 3 months x 4.125 Kg / L) + USD 0.25 / Liter, so that IDR10,195 / liter is obtained for HIP BBN in May 2019.

The exchange rate conversion uses the reference of the average Bank Indonesia middle exchange rate for the period from March 15 to April 14, 2019.

The HIP BBN itself is set every month and is evaluated at least every six months by the Director General of EBTKE.

Source: ANTARA News