The Impact of World Oil Price Fluctuations

Oct 13, 2025 by thesweetdesigns.com 137 views

Introduction

The world is facing a significant surge in the price of oil fuel, which has a direct impact on the selling price of fuel oil, including kerosene in Indonesia. Kerosene, a widely used household fuel for cooking, is now under pressure due to the increase in global prices. The Indonesian government also plans to gradually increase the price of fuel oil, including kerosene, in line with world oil price fluctuations. This situation presents a challenge for PT Pertamina (Persero) Tbk in the Marketing Area I Medan, which is one of the largest oil and gas companies in Indonesia.

The Impact of World Oil Price Fluctuations

The increase in world oil prices, which has reached the highest number in the last two decades, is caused by several factors. Firstly, the demand for oil, especially from countries in the Asia Pacific region such as China, India, and Japan, has soared. Secondly, the inability to find new oil reserves in various parts of the world has led to a reduction in global oil supplies. Thirdly, the global oil supplies are thinning, and finally, an unstable global situation, including terrorist attacks, also affects the condition of world oil prices. However, the most crucial point that causes this increase is the reduction in the discovery of new reserves and the availability of increasingly limited natural resources.

The Opportunity for Kerosene to Gas Conversion

In the context of PT Pertamina (Persero) Tbk in the Marketing Area I Medan, this change is a challenge as well as an opportunity. One of the strategies considered is the conversion from kerosene to gas. This conversion not only answers the problem of rising kerosene prices but also aligns with the government's efforts to reduce dependence on increasingly expensive fuel oil. The shift in use from kerosene to gas is not only caused by economic factors but also by environmental considerations. Gas, which is a cleaner fuel, produces lower emissions than kerosene. This should be an extra attraction for consumers who are increasingly aware of environmental issues.

Market Analysis and Gas Opportunities

The market for gas is growing rapidly, and PT Pertamina (Persero) Tbk has the opportunity to capitalize on this trend. The company can develop a marketing strategy that prioritizes the advantages of gas, both in terms of economy, health, and the environment. A more personal approach, such as the gas use demonstration program in the community, can also be very effective. In addition, there is a need for relaxation in the gas distribution process to ensure public access to this item. Cooperation with local and private governments to make the infrastructure needed to be crucial in changing the consumption behavior of people from kerosene to gas.

Challenges in the Conversion Process

However, there are challenges in this conversion process. One of them is the need to educate the public about the benefits and use of gas as an alternative. People who are accustomed to using kerosene may require detailed explanations on how to use and the benefits of gas. Additionally, the company needs to address the concerns of consumers who may be hesitant to switch to gas due to the perceived higher cost.

Marketing Strategy

PT Pertamina needs to develop an effective marketing strategy to market gas as an alternative fuel. This includes a marketing campaign that prioritizes gas advantage, both in terms of economy, health, and the environment. A more personal approach, such as the gas use demonstration program in the community, can also be very effective. In addition, the company needs to address the concerns of consumers who may be hesitant to switch to gas due to the perceived higher cost.

Conclusion

Fuel transition from kerosene to gas at PT Pertamina (Persero) Tbk Medan Marketing Area is a strategic step in dealing with increasingly uncertain market conditions. With a background in the increase in world oil fuel prices and high dependence on kerosene, this conversion offers more sustainable solutions, both in terms of economy and the environment. Through community education, efficient marketing, and infrastructure support, PT Pertamina has the opportunity to not only overcome the current challenges but also build a greener and more affordable future for the community.

Recommendations

Based on the analysis, the following recommendations are made:

Develop a comprehensive marketing strategy: PT Pertamina needs to develop a marketing strategy that prioritizes the advantages of gas, both in terms of economy, health, and the environment.
Educate the public: The company needs to educate the public about the benefits and use of gas as an alternative.
Address consumer concerns: The company needs to address the concerns of consumers who may be hesitant to switch to gas due to the perceived higher cost.
Cooperate with local and private governments: The company needs to cooperate with local and private governments to make the infrastructure needed to change the consumption behavior of people from kerosene to gas.
Develop a gas use demonstration program: The company needs to develop a gas use demonstration program in the community to educate consumers about the benefits of gas.

By implementing these recommendations, PT Pertamina can successfully transition from kerosene to gas and build a greener and more affordable future for the community.

Q: What is the main reason for the increase in world oil prices?

A: The main reason for the increase in world oil prices is the reduction in the discovery of new reserves and the availability of increasingly limited natural resources.

Q: What are the benefits of converting from kerosene to gas?

A: The benefits of converting from kerosene to gas include a cleaner fuel that produces lower emissions, a more sustainable solution in terms of economy and the environment, and a reduction in dependence on increasingly expensive fuel oil.

Q: What are the challenges in the conversion process?

A: The challenges in the conversion process include the need to educate the public about the benefits and use of gas as an alternative, addressing consumer concerns about the perceived higher cost, and developing a comprehensive marketing strategy to promote gas as an alternative fuel.

Q: How can PT Pertamina address consumer concerns about the perceived higher cost of gas?

A: PT Pertamina can address consumer concerns about the perceived higher cost of gas by providing detailed explanations on how to use and the benefits of gas, offering competitive pricing, and providing incentives for consumers to switch to gas.

Q: What is the role of local and private governments in the conversion process?

A: Local and private governments play a crucial role in the conversion process by providing infrastructure support, such as gas distribution networks, and promoting the use of gas as an alternative fuel.

Q: How can PT Pertamina educate the public about the benefits and use of gas as an alternative?

A: PT Pertamina can educate the public about the benefits and use of gas as an alternative through a variety of channels, including marketing campaigns, community outreach programs, and gas use demonstration programs.

Q: What is the expected outcome of the kerosene to gas conversion at PT Pertamina (Persero) Tbk Marketing Area I Medan?

A: The expected outcome of the kerosene to gas conversion at PT Pertamina (Persero) Tbk Marketing Area I Medan is a reduction in dependence on increasingly expensive fuel oil, a cleaner fuel that produces lower emissions, and a more sustainable solution in terms of economy and the environment.

Q: How can PT Pertamina measure the success of the kerosene to gas conversion?

A: PT Pertamina can measure the success of the kerosene to gas conversion by tracking key performance indicators, such as the number of consumers who have switched to gas, the reduction in kerosene sales, and the increase in gas sales.

Q: What are the potential risks associated with the kerosene to gas conversion?

A: The potential risks associated with the kerosene to gas conversion include the high cost of infrastructure development, the potential for consumer resistance to change, and the risk of market fluctuations.

Q: How can PT Pertamina mitigate the potential risks associated with the kerosene to gas conversion?

A: PT Pertamina can mitigate the potential risks associated with the kerosene to gas conversion by conducting thorough market research, developing a comprehensive marketing strategy, and providing incentives for consumers to switch to gas.

Q: What is the timeline for the kerosene to gas conversion at PT Pertamina (Persero) Tbk Marketing Area I Medan?

A: The timeline for the kerosene to gas conversion at PT Pertamina (Persero) Tbk Marketing Area I Medan is expected to be completed within the next 5 years, with a phased implementation plan to ensure a smooth transition.

Q: How can consumers get involved in the kerosene to gas conversion process?

A: Consumers can get involved in the kerosene to gas conversion process by providing feedback on the benefits and use of gas as an alternative, participating in gas use demonstration programs, and spreading awareness about the advantages of gas.

Q: What is the expected impact of the kerosene to gas conversion on the environment?

A: The expected impact of the kerosene to gas conversion on the environment is a reduction in greenhouse gas emissions, a decrease in air pollution, and a more sustainable solution in terms of economy and the environment.

Q: How can PT Pertamina ensure the quality and safety of gas as an alternative fuel?

A: PT Pertamina can ensure the quality and safety of gas as an alternative fuel by implementing strict quality control measures, conducting regular safety inspections, and providing training to consumers on the safe use of gas.