Biodiesel Price Index for March 2019 Set Higher at Rp7.403

MINISTRY of Energy and Mineral Resources (MEMR) has announced biofuel Market Price Index (MPI) for period of March 2019, included for biodiesel which is set at Rp7.403 per liter and bioethanol Rp10.167 per liter.

The MPI is also set for B20 mandatory program which includes diesel fuel blending, both for special purposed fuels and general fuels. “The current MPI has come into effect since 1 March 2019,” Head of Communication, Public Information Service and Cooperation of MEMR Agung Pribadi said on press release, Wednesday (6/3/2019).

Biodiesel MPI for March 2019 is set at Rp6,371 per liter, higher Rp388 per liter than the previous month, as Kharisma Pemasaran Bersama (KPB) CPO price for period 15 January to 14 February has increased Rp7.101 per kg at average.

The current biodiesel MPI is the sum of the published CPO price for 15 January to 14 February (Rp7.101 per kg), plus a US$100 per ton, multiplied by 879/Kg m3, plus a transport fee. “The transportation cost was defined by the Ministry based on the decree of the Minister of MEMR No. 350 K/12/DJE/2018," Agung added.

Differently, MPI bioethanol is set lower as calculated by the following formula: (KPB average mollases price for 3-month period x 4.125 kg per liter) + US$0.25 per liter. This calculation has generated biofuel MPI at Rp10.235 per liter for February 2019.

“The currency conversion was based on average foreign exchange reference rates defined by Bank Indonesia for period of 15 January to 14 February 2019,” Agung said. MEMR regulates the MPI for biofuels through ministerial decrees issued each month. The MPI is evaluated at least every six months by Directorate General of New Renewable Energy and Energy Conservation. ***