Pertamina to cut oil fuel supply: regional company official says

Manado, North Sulawesi (ANTARA News) - Pertamina will reduce subsidized oil fuel supplies by five percent from its normal quota due to the decision of the House of Representatives (DPR) on Saturday, according to the Manado sales area manager.

"It is certain Pertamina will cut supplies by five percent from the normal quota last year to save on government subsidies," said Irwansyah, Pertamina`s Manado area manager of fuel retail sales.

He noted that the cut was the decision of BP Migas (Oil and Gas Upstream Business Executive Agency) that had been previously decided in the event subsidized fuel prices were not raised.

He noted that BP Migas had created a plan to cut supplies by five percent if the price was not raised.

"The cut will be implemented soon by Pertamina in Manado," he said.

The subsidized oil fuel quota for North Sulawesi in 2011 was recorded at 272,640 kiloliters for premium (regular gasoline), 121,365 kiloliters for kerosene and 84,234 kiloliters for diesel fuel.

Public transport drivers in Manado have noted their concern that the decision to cut supplies would trigger long queues at filling stations.

"Pertamina had once implemented such a policy and, as a result, buyers lined up at filling stations," Johny Pangemanan, a public transport driver in Manado, said.(*)