Pertamax price hike triggers 'domino effect' for Indonesian retailers and drivers

A sharp increase in the price of Pertamax, a non-subsidized fuel, is creating a domino effect for small businesses in Majalengka Regency, Indonesia. Pertamina Patra Niaga adjusted the prices, raising Pertamax (RON 92) from Rp12,300 to Rp16,250 per liter and Pertamax Green 95 (RON 95) from Rp12,900 to Rp17,000 per liter, effective June 10. This significant jump is impacting various sectors, from small retailers to mobile vendors.

Ucup, a 48-year-old retail gasoline seller in the Cigasong sub-district, reported a drastic 50% decrease in his daily sales. "Usually, I can sell two jerrycans (about 67 liters) in a day. Now, it takes two days to sell that much," he lamented. Ucup attributes this decline to consumers opting to buy the subsidized Pertalite directly from official gas stations, driven by a price difference of Rp6,300 per liter. This shift is severely affecting small-scale fuel vendors who rely on the price difference for their business.

The rising fuel costs are also squeezing the earnings of online motorcycle taxi (ojol) drivers in Majalengka. They are experiencing a reduction in their net income as the cost of fuel, a major operational expense, continues to climb. Mobile vendors are also being forced to find ways to cope with the increased expenses, impacting their ability to conduct business effectively.

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Usually, I can sell two jerrycans (about 67 liters) in a day. Now, it takes two days to sell that much.