Biodiesel Price for May 2020 Set Higher at Rp8.494
Ministry of Energy and Mineral Resources (MEMR) has set up Biodiesel Market Price Index (MPI) for May 2020 at Rp8,494 per liter, higher Rp475 from April 2020 at Rp8,019.
JAKARTA— Ministry of Energy and Mineral Resources (MEMR) has set up Biodiesel Market Price Index (MPI) for May 2020 at Rp8,494 per liter, higher Rp475 from April 2020 at Rp8,019.
On a letter of 15 April 2020, Director General of New Renewable Energy and Energy Conservation of MEMR, said that the MPI will become effective on 1 May 2020. The MPI is set for B30 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 benchmark CPO average price + US$ 100 per ton) x 870 kg/m3 + transport fee. The price is higher following increase in Kharisma Pemasaran Bersama (KPB) benchmark CPO price. KPB average CPO price from 15 March 2020 to 14 April 2020 is Rp8,153/kg.
Differently, MPI bioethanol for May 2020 is set at Rp11,709 per liter, higher Rp449 per liter than April 2020. The price is higher following rose in KPB benchmark mollases average price from 15 November 2019 to 14 April 2020 at Rp1,863 per 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 March to 14 April 2020. ***