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Subsidized Fuel Consumption Dropping

19 November 2014 11:30 WIB

TEMPO.CO, Jakarta - PT Pertamina (Persero), the state-owned oil and gas company, noted a decline in subsidized fuel consumption volume. Pertamina marketing and commercial director Hanung Budya said that, based on the interim report, the sales of subsidized gasoline (Premium) and subsidized diesel (Solar) in public gas stations have declined after prices were raised on November 18.

Meanwhile, Hanung said, the purchase volume of non-subsidized gasoline (Pertamax), which now reaches 2,500 kiloliters per day, is expected to increase to 10,000 liters per day in the next two months.

Hanung said Premium consumers are now migrating to Pertamax because of the reduced price disparity. Premium is now sold for Rp8,500 per liter, just Rp1,700 cheaper compared Pertamax's selling price of Rp10,200 per liter. With the increasing downtrend in global oil prices, Pertamax price is predicted to go even lower to under Rp10,000 per liter.

Based on previous price hikes, said Hanung, sales volume go back to normal in about one week after prices are raised. "The first day sales volume goes down by 50 percent, on the second the decline is 40 percent, and then it goes back to normal after fove to six days," he said.

In the long run, Hanung said, the price hike would decelerate the sales growth of subsidized diesel.

Pertamina estimated the price hikes will lower subsidized consumption volume by 250,000 kiloliters at the end of 2014. With the decline, the 1.86-million kiloliter consumption overshoot in the 2014 Amended State Budget could drop to 1.6 million kiloliters. 

KHAIRUL ANAM | UKKY PRIMARTANTYO | ODELIA SINAGA | AGUS SUPRIYANTO



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