Limiting consumption of subsidized fuels was one of the efforts to pressure the country into liberalizing the oil and gas sector, HTI spokesman M Ismail said.
By limiting the use of subsidized fuels as of April 1, 2012, the government was forcing the people to turn to non-subsidized gasoline such as pertamax which cost twice as much as subsidized premium gasoline, he said.
In the long run, the limitation of subsidized fuel consumption would benefit foreign oil companies which operate gasoline stations in the country, he said.
The foreign-owned gasoline stations had often suffered losses as the local people preferred to use premium gasoline sold at lower price, he said.
The plan to limit consumption of subsidized fuels would force the people to switch to gasoline which had higher octane as sold by foreign-owned gasoline stations, he said.
"With more efficient production cost and likely better quality the foreign-owned gasoline stations will be more competitive than those operated by state oil and gas company Pertamina," he said.
He believed if the government pushed through the plan, foreign-owned gasoline stations would be "mushrooming" in the country in the not-so-distant future.
In the absence of innovations, local gasoline stations which had so far affiliated with Pertamina would turn to the foreign oil companies, he said.
In a related development, thousands of people coordinated by HTI took to the streets in Kendari, capital of Southeast Sulawesi province, Saturday to protest what they termed the "liberalization of oil and gas."
The crowds which also included children first gathered at Kendari`s Lakindende square and then marched to the Mandonga traffic circle where their spokesmen made speeches elaborating on the rally`s purpose.
What they were protesting against was the government`s plan to limit consumption of subsidized automotive fuel oil starting on April 1, 2012.
The government`s plan stems from its intention to reduce its fuel oil subsidy burden and is part of a program to replace fuel oil entirely with gas in the medium-term.
(Uu.S012/HAJM/H-YH)
Editor: Priyambodo RH
Copyright © ANTARA 2012
