No Sanction Yet on LCGC Using Subsidized Fuel
2 April 2014 15:26 WIB
TEMPO.CO, Jakarta - Industry Minister Mohamad Suleman Hidayat said there was no legal sanction yet on low-cost green car [LCGC] using subsidized fuels. “The Finance Minister and I are looking into the possibilities,” he said.
The minister explained LCGCs require at least 92-octane fuel to operate, while their users often bough cheaper fuels as its subsitute—which actually could damage the cars.
Hidayat said the LCGC program was initially aimed at trimming the nation’s fuel consumption by 60 percent as the cars only consumed around eight liters per day. “The right move is that we should increase the prices of subsidized fuels, so there won’t be the Premium type gasoline anymore. But that’s my personal opinion,” he said.
The minister said that he could not speak on this issue before the cabinet as it was the authority of the Ministry of Energy and Mineral Resources. He added the government was currently prepping the LCGC to vie with similar products from ASEAN, particularly from Thailand.
MARIA YUNIAR