April 2020, Biodiesel Price Down, Bioethanol Up
JAKARTA—Biodiesel Market Price Index (MPI) for April 2020 is set lower at Rp8,019 per liter and bioethanol at Rp11,210 per liter. Ministry of Energy and Mineral Resources (MEMR) has set biodiesel MPI for April 2020 down Rp914 per liter from previous price Rp8,933 per liter.
Head of Communication, Public Information Service and Cooperation of MEMR Agung Pribadi said on press release, Sunday (29/3/2020), that transportation cost is not included in this biodiesel MPI. The transportation cost is defined by following rule on the decree of the Minister of MEMR No. 148 K/12/DJE/2019.
“The price is down following the decline in Kharisma Pemasaran Bersama (KPB) benchmark CPO price. KPB average CPO price from 15 February 2020 to 14 March 2020 is Rp7,806/kg,” Agung said.
The current biodiesel MPI is set using following pricing formula: MPI = (KPB benchmark CPO average price + US$ 100 per ton) x 870 kg/m3 + transport fee. The MPI is set for B30 mandatory program which includes diesel fuel blending, both for special purposed fuels and general fuels.
Differently, MPI bioethanol for April 2020 is set at Rp11,210 per liter, higher Rp749 per liter than March 2020. The price is higher following rose in KPB benchmark mollases average price from 15 November 2019 to 14 March 2020 at Rp1,863 per kg, while KPB benchmark average price from 15 October 2019 to 14 February 2020 is Rp1,708/kg.
The price is calculated by the following formula: (KPB benchmark 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 February to 14 March 2020. ***