Biodiesel Market Price for March 2020 Set Lower at Rp8.933
Ministry of Energy and Mineral Resources has announced Biofuel Market Price Index (MPI), included biodiesel and bioethanol for period of March 2020 and it goes into effect on 1 March 2020. Biodiesel MPI is set at Rp8.933 per liter and bioethanol at Rp10.384 per liter.
JAKARTA--Ministry of Energy and Mineral Resources has announced Biofuel Market Price Index (MPI), included biodiesel and bioethanol for period of March 2020 and it goes into effect on 1 March 2020. Biodiesel MPI is set at Rp8.933 per liter and bioethanol at Rp10.384 per liter.
The MPI is set for B30 mandatory program which includes diesel fuel blending, both for special purposed fuels and general fuels. The current MPI is down following the decline in Kharisma Pemasaran Bersama (KPB) benchmark CPO price. Average KPB CPO price from 15 January 2020 to 14 February 2020 is Rp8.901/kg.
Transportation cost is not included in this biodiesel MPI. 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. 148 K/12/DJE/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. ***
