Pertamina Ordered to Start Limiting Subsidized Oil Sales

Jakarta, Indonesia (News Today) - BPH Migas, the downstream oil and gas regulatory agency, has asked state-owned oil and gas company PT Pertamina to start limiting the sale of subsidized regular gasoline and diesel oil. BPH Migas chief Tubagus Haryono said through a short message service here on Saturday that according to Law Number 22 of 2010 on the revised 2010 budget the quota of the subsidized gasoline (premium) was 21,433,664 kilolitres while diesel oil 11,194,175 kilolitres.

"Consumption of subsidized premium however has until August 2010 reached 14,948,798 kilolitres or 69 percent of the quota while diesel consumption reached 8,515,732 kilolitres or 76.07 percent of the quota," he said.

He said unless limitations were made it was feared the quota for subsidized premium and diesel would be surpassed. Tubagus said right now the government was just formulating the amendment of Presidential Regulation Number 55 of 2005 and Presidential Regulation Number 9 of 2006.

"While waiting for the second amendment of the presidential regulations we asked Pertamina to immediately take actions," he said.

He said limitation could be done among others by increasing the non-subsidized oil dispensers at gas stations in especially elite neighbourhoods, toll roads and mainroads, and reducing the number of dispensers for subsidized fuel oils. Other efforts could be taken by separating the lane for subsidized fuels from that for non-subsidized fuels or separating the lane for motorcycles from that for cars.

He said Pertamina could also stop serving subsidized fuels to yachts, cargo ships except those carrying staples and supporting ships which are not categorized as small business.

BPH Migas has also asked Pertamina not to serve subsidized oils to vehicles or heavy equipment used in industrial activities, mining, power plants, construction projects, container services, forestry and plantations which could be categorized as no small businesses. Pertamina is also asked to limit sale of subsidized oils for fishermen to maximally 25 kilolitres a month.

"We have also asked Pertamina to increase supervision of subsidized oil distribution to avoid irregularities, help the government in its familiarization efforts and campaign for fuel economy and preparing the closed system of subsidized fuel distribution," he said.

Source : kompas

Posted in: