The engines of new vehicles, known for better performance on account of use of high octane gasoline, have also contributed to the decreasing consumption of Premium fuel, said a member of the Downstream Oil and Gas Regulatory Agency (BPH Migas), Ibrahim Hasyim, here on Monday.
Commenting on the state oil and gas company Pertaminas data on the consumption of Premium gasoline, he noted that people opt for higher octane gasoline because its price is not much different from that of the Premium.
The government has set the prices of Premium gasoline until the end of 2016 at between Rp6,450 and Rp6,550 per liter outside the islands of Java, Madura and Bali.
The price is not much different from the 90-octane Pertalite and 92-octane Pertamax fuel sold at Rp6,900 and Rp7,350 per liter respectively, he added.
Ibrahim further said the government was no longer subsidizing the Premium gasoline and, therefore, it does not affect the state budget.
If the Premium gasoline is still being consumed, it could be because of cheaper price than Pertalite and Pertamax or easier availability at fuel stations across the country, Hasyim noted.
However, he underlined that people are currently not too sensitive about the gasoline prices, thanks to the globally falling oil prices. The people are also more aware of quality fuel and their vehicles performance.
Motorcyclists have already started using higher octane gasoline, such as 92-octane Pertamax and 90-octane Pertalite, he pointed out.
The future automotive technology will also encourage people to choose the 90, 92 and 95-octane gasoline. "Therefore, they will not consume the 88-octane Premium," Hasyim opined.
According to Pertaminas statistical data, Premium gasoline's consumption has come down by about 28.75 percent or about 50,000 kiloliters per day over these past three months.
Instead, the use of higher octane gasoline, such as Pertalite and Pertamax series, is on the rise. The daily consumption of Pertalite, for instance, has risen by about 282 percent than this years first semester, he disclosed.
The same trend was also seen in higher octane gasoline with the average consumption of Pertamax series being 9,626 kiloliters per day in the first semester of 2016 but then rising to 15,682 kiloliters per day as of September 20, 2016, he explained.
Meanwhile, Gus Irawan Pasaribu, chairman of the House of Representatives' (DPR) Commission VII overseeing energy, said the downward trend of premium consumption was positive because the product was no longer being subsidized.
Peoples decision to choose the higher octane gasoline was a wise step, he said, adding that a political decision was needed to reduce the supply of Premium.
Pertaminas Vice President for Corporate Communication Wianda Pusponegoro said her company has requested the government to formulate a concrete plan regarding the distribution of Premium gasoline as its consumption falls.
"We have already provided the government with the needed data. The situation related to Premium gasoline must be made clear," she stressed.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
