Ministry Convinced there's Enough Fuel until Year-End
23 September 2014 16:30 WIB
TEMPO.CO, Jakarta – The Ministry of Energy and Mineral Resources said the quota of subsidized fuel should be enough until the end of the year. The reason, is because the 2014 Amended State Budget has limited the volume of subsidized fuel to 46 million kiloliters.
"We believe the fuel quota will be enough until the end of the year, provided the fuel subsidy allocation adjustment is executed consistently," Downstream Oil and Gas director Heri Purnomo told Tempo yesterday.
To address the high consumption of subsidized fuel, Heri said the government will continue to control fuel subsidy policy as instructed by the regulatory Agency of Downstream Oil and Gas (BPH Migas).
"One of the steps taken by BPH Migas is reducing the amount of fuel subsidy allocation to retail outlets to 20 percent," he said.
State oil and gas company Pertamina had stated there is potential that this year's subsidized fuel quota will be broken, because the control policy for fuel subsidy distribution to gas stations has been stopped. Based on Pertamina's calculation, the potential for subsidized fuel consumption to exceed the pegged quota reaches 1.35 million kiloliters or Rp8 trillion.
"If distribution control is discontinued while the quota is not raised and we do nothing, Premium (subsidized gasoline) and Solar (subsidized diesel) will be out by December," Pertamina marketing and commercial director Hanung Budya said last August.
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