Biodiesel HIP BBN Rp7,321 in July 2020

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 236.Pers/04/SJI/2020

Date: 8 July 2020

Biodiesel HIP BBN Rp7,321 in July 2020

Ministry of Energy and Mineral Resources (EMR) has set the Biofuel Market Index Price (HIP-BBN), the biofuel ceiling price, for biodiesel in July 2020 at Rp7,321 per liter. The biodiesel ceiling price has picked up from June price of Rp6,941 per liter.

"This price applies to biodiesel that is mixed into oil fuel during the public health emergency period and national non-natural disaster of the Covid-19 pandemic for next month," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR Agung Pribadi in Jakarta (8/7).

The ceiling price is formulated based on the meeting results of the Steering Committee of Indonesian Palm Oil Plantation Fund Management Agency (BPDKS) and EMR Ministerial Decision Number 105 K/12/MEM/2020. "The price also applies to the mandatory B30 program (mixing of 30 percent of biodiesel into diesel solar)," Agung continued.

Agung went on to explain that the rise in the biodiesel market price in July is largely due to the increasing Crude Palm Oil (CPO) price. The average CPO price of Kharisma Pemasaran Bersama (KPB) in the period 25 May-25 June 2020 was Rp7,272 per kg. "The biodiesel HIP excludes transport costs which are regulated in EMR Ministerial Decision Number 148 K/10/DJE/2019," explained Agung.

KPB's CPO price in the previous period was Rp6,773 per kg. Biodiesel price is set by calculating the HIP formula = (average CPO price of KPB + USD 100/tonne) x 870 kg/m3 + transport costs. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Share This!