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Indonesia to change oil pricing system |
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19:53, July 10, 2007 |
The Indonesian government will change the crude oil pricing method for the export markets and no longer use the reference of the Asian Petroleum Price Index (APPI), an official said Tuesday.
In the existing pricing, the APPI accounted for a mere 5 percent of Indonesia crude oil price (ICP), while reference to the Japan Rim and the Mean of Platts Singapore (MOPS) shared 47.5 percent each, said Minister of Energy and Mineral Resources Purnomo Yusgiantoro.
"The APPI should represent (oil) producers and normally producers struggle to lift price and consumers fight for the opposite. So it's quite strange that the (APPI) panel has demanded for a lower price," he said in an open hearing with a House of Representatives' commission.
"If the APPI price doesn't reflect the market situation, we will no longer refer to it."
The ICP is one of the main indicators for the government to draft the state budget.
The ICP rose to 68.6 dollars per barrel in May from 67.9 dollars in the preceding month.
Source: Xinhua
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