TEMPO.CO, Jakarta – Andy Noorsaman Sommeng, the head of the Oil and Gas Downstream Regulatory Agency (BPH Migas), urged the government to increase subsidized fuel prices to prevent fuel hoarding.
“If [the government] keeps stalling [the fuel price hike], people would be encouraged to hoard fuel” Andy said on Tuesday, November 4, 2014, after a meeting at the Electricity Directorate General.
Andy called on public to accept the fact that the fuel subsidy had been burdening the State Budget and the reality that fossil fuel was unrenewable.
Earlier, Energy and Mineral Resources Minister Sudirman Said explained that increasing fuel prices had to be prioritized as the fuel subsidy over the last five years had reached Rp1,300 trillion (US$108.3 billion), which was higher than the budget for the people’s welfare and infrastructure development programs.
According to Sudirman, the fuel subsidy had missed its target and it should be allocated to finance toll roads, hospitals, irrigations and infrastructures. However, Sudirman refused to reveal when the government would execute the plan.
AYU PRIMA SANDI