Proceedings of the 1st International Conference on Contemporary Risk Studies, ICONIC-RS 2022, 31 March-1 April 2022, South Jakarta, DKI Jakarta, Indonesia

Research Article

The Determining Factors of Consumer Behavior to Substitute RON-88 (Premium) Fuel Consumption to Pertalite and Pertamax Fuel

Download254 downloads
  • @INPROCEEDINGS{10.4108/eai.31-3-2022.2320752,
        author={Dedi  Syahputra and Andika  Pambudi},
        title={The Determining Factors of Consumer Behavior to Substitute RON-88 (Premium) Fuel Consumption to Pertalite and Pertamax Fuel},
        proceedings={Proceedings of the 1st International Conference on Contemporary Risk Studies, ICONIC-RS 2022, 31 March-1 April 2022, South Jakarta, DKI Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICONIC-RS},
        year={2022},
        month={8},
        keywords={subsitute pertalite and pertamax fuel ron-88 (premium) fuel logit model},
        doi={10.4108/eai.31-3-2022.2320752}
    }
    
  • Dedi Syahputra
    Andika Pambudi
    Year: 2022
    The Determining Factors of Consumer Behavior to Substitute RON-88 (Premium) Fuel Consumption to Pertalite and Pertamax Fuel
    ICONIC-RS
    EAI
    DOI: 10.4108/eai.31-3-2022.2320752
Dedi Syahputra1, Andika Pambudi1,*
  • 1: Pertamina University
*Contact email: andika.pambudi@universitaspertamina.ac.id

Abstract

The fuel reform policy in Indonesia is a new step for the government with the aim of distributing more environmentally friendly fuel. The use of Premium fuel is considered to be inappropriate in terms of emission standards, price acquisition and distribution distribution to the community. This will greatly affect the pattern of behavior in the use of fuel in people's lives. There needs to be an effort to substitute the use of subsidized fuel for Pertalite and Pertamax which are considered better. The data used in this study are primary data obtained from survey results and direct interviews with vehicle fuel users in West Java, Central Java and East Java. The method used in this study is the Logit Probit Regression method to analyze the factors that affecting consumer behavior in transition the use of Premium fuel to Pertalite and Pertamax. By doing a comparison between Logit and Probit Regression shows that the Logit Regression model is the best analysis model. The estimation results explain that the factors that significantly affecting the shift in the use of Premium fuel to Pertalite and Pertamax are gender, income level, number of vehicle units and public perception of green energy. Meanwhile, the level of education and distance to gas stations did not significantly affect the transition pattern of using Premium fuel in the community.