We will impose strict sanctions against the people, who have misused subsidized fuels.
Jakarta (ANTARA) - The government has suggested to the Indonesian House of Representatives (DPR RI) to increase the quota for subsidized 90-octane Pertalite fuel and diesel fuel as a precautionary measure against the rising global crude oil prices.

Energy and Mineral Resources (ESDM) Minister Arifin Tasrif stated that the additional subsidized fuel quota is deemed necessary on account of the increasing price disparity between subsidized and non-subsidized fuels.

"The global political situation has caused oil prices to rise. The average Indonesian Crude Oil Price (ICP) in March 2022 had reached US$98.4 per barrel," he noted during a working meeting with Commission VII of the DPR RI here on Wednesday.

Tasrif noted that the figure surges far above the state budget assumption of the ICP, which was only US$63 per barrel.

During the period from January to March 2022, the government noted that the realized quotas of distributed Pertalite fuel and diesel fuel were higher by 14 percent and 9.49 percent respectively as compared to the initial planned quota.

Hence, the government will increase the Pertalite fuel quota by 5.45 million kiloliters to reach 28.5 million kiloliters, while the quota for diesel fuel will be raised by 2.28 million kiloliters to reach 17.39 million kiloliters.

The demand for diesel fuel hiked due to increasing mining and plantation activities.

Related news: Pertamina to keep Pertalite price unchanged for economic stability

The 2022 state budget has stipulated that the quota for Pertalite reaches 23.05 million kiloliters. As of April 2, 2022, some 6.48 million kiloliters of the fuel were distributed.

However, the initial quota of subsidized diesel fuel is 15.10 million kiloliters out of which 4.08 million kiloliters were disbursed as of April 2, 2022.

Hence, the initial quota left for Pertalite and diesel fuel reached 16.57 million kiloliters and 11.02 million kiloliters respectively.

Furthermore, the minister emphasized that the government will strive to maintain the reliability of fuel supply and distribution during the Ramadan month and Eid al-Fitr holiday period.

"We will impose strict sanctions against people, who have misused the subsidized fuels. In addition, we are attempting to optimize the digitalization of gas stations," he added.

Related news: No hike in subsidized fuel prices: Indonesian govt

Translator: Sugiharto Purnama, Uyu Liman
Editor: Suharto
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