Fuel Consumption Overshoots albeit Price Hike: Pertamina
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Jumat, 31 Oktober 2014 14:26 WIB
TEMPO.CO, Jakarta – State oil and gas company PT Pertamina estimated this year's subsidized fuel consumption will exceed its 46-million kiloliter limit despite the government's decision to raise prices before year-end.
"Based on this week's number until the end of the year, our prognosis is that there will be an excess of up to 1.9 million kiloliters in the quota," Pertamina's trade and marketing director Hanung Budya said after a meeting at the Energy and Mineral Resources Ministry, yesterday.
Hanung said that once prices are raised the consumption overload will not be excessive. "I believe that this year's remaining two months will not suffice for any kind of policy on austerity. There should be a reduction in price disparity," he said.
Hanung also said that the excessive consumption stems from illegal distribution of subsidized fuel by people trying to profit from the high price disparities.
Currently, the price of subsidized diesel (Solar) is Rp5,500 per liter, far cheaper than non-subsidized diesel's Rp12,000 per liter. The high price difference can also be found on subsidized gasoline (Premium) which is sold for Rp6,500 per liter, below the price of its non-subsidized counterpart of Rp10,500 to Rp10,700 per liter.
AYU PRIMA SANDI
