TEMPO.CO, Jakarta - The Downstream Oil and Gas Regulatory Agency (BPH Migas) has decided to continue its policy on controlling subsidized fuel since no effort has been done to ensure sufficient quota by the end of this year.
"As long as there is no instruction from the government, we will have to ensure the sufficiency of the fuel quota at 46 million kiloliters by December 31," BPH Migas Chairman Andy Sommeng said on Monday, September 22, 2014.
According to Andy, subsidized fuel control policies are still relevant because Pertamina has yet to announce its evaluation results on fuel consumption control measures.
"Pertamina only said that the fuel control measures was not effective. But it has not provided details about how much [subsidy] can be saved, the remaining margin and the potential of layoffs because of the fuel bans at toll roads," Andi said.
Andy admitted that the amount subsidized fuel quota will not be enough to fulfill domestic demands until the end of the year. However, He added that the quota could be maintained if fuel distributors have a method to manage the supplies, such as Pertamina's regular alternative emergency (RAE).
Andy confirmed that it is unlikely for President Susilo Bambang Yudhoyono to increase fuel prices in the near future, despite the amount of money it could save.
AYU PRIMA SANDI