Diesel Fuel Restriction not Effective, Analyst Says
1 August 2014 20:00 WIB
TEMPO.CO, Jakarta - Analysts predicted that subsidized diesel fuel (locally known as Solar) restriction in Central Jakarta that has been enforced starting from August 1, 2014, would not be effective. Director Executive of Energy Watch Mamit Setiawan, said that the policy would only move Solar consumption from Central Jakarta to other areas.
"Gas stations in West, North and East Jakarta are still selling [Solar], which means that consumption will move from Central Jakarta," Mamit told Tempo on Thursday, July 31, 2014.
Mamit said that the restriction would miss its intended target since there were not many large vehicles in Central Jakarta running on diesel fuel. He added that the Solar consumption is concentrated in North and West Jakarta because both areas are close to industrial areas.
"The policy is wrong. Premium should be restricted in Central Jakarta," Mamit said.
According to Mamit, the government should control the distribution of subsidized fuel in Jakarta by limiting the Solar quota.
Earlier, the Downstream Oil and Gas Regulatory Agency (BPH Migas) issued a circular letter on subsidized fuel control on July 24, 2014. The circular letter specifically restricts Solar distribution in Central Jakarta starting from August 1, 2014.
AYU PRIMA SANDI