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Pertamina Cuts Subsidized Fuel Distribution by 5-15%

26 August 2014 13:16 WIB

TEMPO.CO, Jakarta – State oil and gas company has cut its subsidized gasoline and diesel distribution to gas stations. The allocation of subsidized gasoline—also known as Premium—is cut by five percent fwhile subsidized diesel (Solar) is cut by 10 to 15 percent.

The policy was made so that the quota of subsidized fuel will not exceed the specified allocation of 46 million kiloliters before the end of the year..

"We have to choose between allowing normal consumption and running out by early December, or we could distribute according to quota," Pertamina commercial and marketing director Hanung Budya said.

The cut was done by reducing the daily supplies of Pertamina's gas stations nationwide. To replace the missing volume, Pertamina is increasing the supply of its non-subsidized fuel such as Pertamax and Pertamax Dex.

Pertamina spokesman Ali Mundakir said the daily cut is done to ensure that the fuel quota—set by the government at 46 million kiloliters—will suffice until December 31, 2014.

"[The cut] is applied to some 5,000 gas stations across Indonesia," he said.

ALI NY | AYU PRIMA SANDI



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