Subsidized Fuel is increased again

"Landep News"

State oil and gas firm PT Pertamina has decided to raise subsidized fuel supplies above the 2011 state budget quota due to high demand leading to shortages in a number of areas.

The decision was taken to support the growth of the people’s economy, Pertamina spokesman M Harun said here on Friday. He said the additional supplies were taken from the company’s fuel stocks which currently reached 3.4 million kiloliters.

Subsidized Fuel is increased again

If the quota of subsidized fuels in the revised 2011 state budget was not to be raised Pertamina’s profit would compensate for the additional supplies, he said. Admittedly, the government had asked Pertamina to maintain the subsidized fuel quota of 38.6 million kiloliters set in the 2011 state budget. But in reality, the people were in dire need of additional supplies as reflected by long queues for subsidized fuels at gasoline stations, according to him.

“So, we decided to release the stocks no matter whether (subsidized fuel consumption) will exceed the quota.”

He likewise asked security agencies to crack down on the abuse of subsidized fuels. In the year to June 28 subsidized gasoline consumption reached 11.3 million kiloliters, or about a half of the quota of 23.19 million kiloliters set in the 2011 state budget. Subsidized diesel oil consumption reached 6.3 million kiloliters while the quota of subsidized diesel oil is 13.08 million kiloliters.

The subsidized gasoline and diesel oil consumption was respectively 5.2 percent and 7.5 percent higher than their daily quota. “Right now subsidized gasoline consumption reaches 68,000 kiloliters per day, well above the daily quota of 60,000 kiloliters,” he said.

Harun said subsidized fuel consumption was likely to increase before the fasting month of Ramadhan until the post-fasting month festivities or Lebaran. “We must have extra stocks to face the fasting month and lebaran.”

Earlier, Director General of Oil and Gas at the Energy and Mineral Resources Ministry Evita Legowo said the government would propose to the House of Representatives (DPR) an additional quota of 1.8 million kiloliters of subsidized fuels to 40.4 million kiloliters for this year.

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