Commercial arm of State oil and gas company, PT Pertamina Patra Niaga, sold approximately 24 million kiloliters of B35 biodiesel to retail and industrial consumers throughout 2023.
Pertamina Patra Niaga’s Corporate Secretary, Irto Ginting, said the retail B35 biodiesel sold at gas stations is a subsidized product, priced at Rp6,800 per liter.
“Meanwhile, the industrial price corresponds to the market price and the monthly reference publication price,” Irto said on Sunday, April 28, 2024.
The Oil Palm Plantation Fund Management Agency (BPDPKS) projected the need for B35 biodiesel incentive funds this year to reach Rp28.5 trillion (US$1.8 billion). This projection is a 55.56 percent increase from the realization of the incentive distribution for the solar blend program with 35 percent palm oil-based biofuel (BBN) amounting to Rp18.32 trillion last year.
At that time, the oil palm plantation fund management agency managed to collect export levies of Rp32.29 trillion. On the other hand, Irto said that the company will ensure the distribution of biodiesel remains stable amidst this year’s consumption increase trend.
As for the realization volume of B35 biodiesel distribution in the first quarter of 2024, it reached 2.86 million kiloliters or 21.37 percent of the current quota of 13.41 million kiloliters. Meanwhile, the realization of B35 biodiesel distribution in the same period last year was at the level of 2.55 million kiloliters.
“Ensuring the distribution of biodiesel requires attention to the availability of its vegetable raw materials. The projection of production and distribution increases must be balanced with the supply of raw materials,” Irto said.
Previously, the Ministry of Energy and Mineral Resources (ESDM) estimated that the biodiesel incentive for 2024 would be higher than 2023. The reason is that the Biodiesel Market Index Price (HIP) trend in the first quarter of 2024 is wider than 2023.
Price disparity between Biodiesel and regular diesel fuel (Solar) throughout January, February, and March 2023 was at Rp715, Rp471, and Rp1,626 per liter, respectively. Meanwhile, the price disparity between the two products for the same period this year ranged from Rp1,382, Rp1,724, and Rp1,251 per liter.
“Thus, the amount of the Biodiesel incentive for 2024 is estimated to be higher than 2023,” Secretary General of the ESDM ministry, Dadan Kusdiana, said as quoted on Sunday, April 28, 2024.
Additionally, the realization trend of Fatty Acid Methyl Ester (FAME) distribution increased from January to March 2024 compared to the first quarter of 2023. The Ministry of ESDM predicts that the consumption trend of B35 biodiesel in the next quarter will tend to increase by 1.37 percent from 2023 to 2024 in the same month period.
