September 2019, Biodiesel Price Up, Bioethanol Down

BIODIESEL Market Price Index (MPI) for September 2019 is set higher as Crude Palm Oil (CPO) price has risen. Ministry of Energy and Mineral Resources (MEMR) has set biodiesel MPI at Rp 6.929 per liter, effective from 1 September 2019. “Biodiesel price has increased Rp 134 per liter from previous month,” Head of Communication, Public Information Service and Cooperation of MEMR Agung Pribadi said on press release, Monday (2/9/2019).

The price has risen responding to the hike in Kharisma Pemasaran Bersama (KPB) CPO price Rp6.556/Kg from the previous month price at Rp 6.394/Kg. Transportation cost is not included in this biodiesel MPI. The MPI is set for B20 mandatory program which includes diesel fuel blending, both for special purposed fuels and general fuels.

The current biodiesel MPI is set using following pricing formula: MPI = (KPB’s CPO average price + US$ 100 per ton) x 870 kg/m3 + transport fee.  The transportation cost is defined by following rule on the decree of the Minister of MEMR No. 91 K/12/DJE/2019. Differently, MPI bioethanol for September 2019 is set at Rp 10.091 per liter, lower Rp 109 per liter than August 2019 at Rp10.200.  

The price is calculated by the following formula: (KPB average mollases price for 3-month period x 4,125 kg/L) + US$ 0.25/Liter. The currency conversion was based on average foreign exchange reference rates defined by Bank Indonesia for period of 15 July to 14 August 2019. MEMR regulates the MPI for biofuels through ministerial decrees issued each month and is evaluated at least every six months by Directorate General of New Renewable Energy and Energy Conservation. ***