Fuel prices have increased starting from August 3, 2022. Despite the increase, Indonesia is still one of the countries with the cheapest fuel prices. After researching data from the databox as of August 15, 2022, the price of fuel in Indonesia is Rp. 18,663,018/liter. According to Global Petrol Price, the data shows that Indonesia is in third place from other countries with the cheapest fuel prices in Southeast Asia.
The soaring fuel price in August 2022 is not the same in every region. This fuel adjustment has been regulated in the Ministerial Regulation (Kepmen) of ESDM Number 62 K/12/MEM/2020 concerning the Basic Price Formula for Calculation of the Retail Selling Price for General Fuel Oil, Gasoline and Diesel.
If we compare Pertamina’s fuel prices with conventional private companies that also sell fuel, it appears that the price difference between Pertamina’s sales is only slightly different from that of Vivo, which sells Pertalite per liter at a price of Rp. 10,000 and Revvo 89 at a price of Rp. 10,900.
Then, Pertamax92 at a price of Rp. 14,500/liter, Revvo 92 at a price of Rp. 15,400, and Shell Super at a price of Rp. 15,420. This proves that Pertamina has an effort to maximize profits. In fact, even though we have become fuel importers, we also have abundant fuel yields from our earth, so that cross subsidies can be carried out between the cost of making imported fuel and fuel from Indonesia.
emission tax
Let’s Know, emission tax (emission tax), is a tax imposed on fuel users based on their emission levels. Hydrocarbon fuels (including petroleum, natural gas, and coal) contain emission elements that turn into carbon dioxide (CO2) and other compounds when burned. Meanwhile, referring to the IBFD International Tax Glossary (2015), Emission tax is a tax imposed on fossil fuels. Several countries have done emission tax with different calculations.
In countries that have implemented emission taxes, there has been a reduction in emissions as well as additional state income from tax revenues. Then is Indonesia also like that?
As we already know, the government will impose emissions taxes on the transportation, building, and land-based sectors in 2025. In the near future, implementing the emissions tax in Indonesia will take effect gradually starting July 1, 2022, limited to Steam Power Plants (PLTU) coal.
This is in line with the government’s efforts to achieve the target of reducing greenhouse gas emissions by 29% on its own and 41% with international support by 2030. Implementing an emission tax in Indonesia will use a cap and tax scheme that will set a tariff of Rp. 30 per kilogram of carbon. dioxide equivalent at the amount of emission that exceeds the specified cap.
In the implementation of the imposition of emission taxes in Indonesia, taxpayers can take advantage of emission certificates purchased on the emission market as a reduction in their emission tax obligations. So far, most of the emission taxes are in the form of excise duty, either as a source of general revenue or placed for specific purposes. For example, excise duty on crude oil and oil products to overcome the damage from oil spills. The imposition of emission taxes in Indonesia is regulated in Law Number 7 of 2021 Harmonization of Tax Regulations (UU HPP).