The policy will be started in Java and Bali which have necessary infrastructures.
Jakarta (ANTARA News) - The government will go ahead with its plan to limit the use of subsidized fuels by private cars to meet the subsidized fuel quota target of 40 million kiloliters set in the revised 2012 state budget, an official said.

The limitation of subsidized fuel consumption would be based on the engine capacity of private cars so that not all of them would be subjected to the policy, Director General of Oil and Gas at the Energy and Mineral Resources Ministry Evita Legowo said on Wednesday.

"The policy will be started in Java and Bali which have necessary infrastructures," she said.

She feared if subsidized fuel consumption was not controlled it would soar to 46--47 million kiloliters, well above the assumed consumption of 40 million kiloliters.

Currently, private cars consumed more subsidized premium gasoline than any other cars in the country, reaching 53 percent of the total consumption, she said.

Under the policy, motorcyclists would still be allowed to use subsidized premium gasoline, she said.

The energy and mineral resources minister would soon issue a regulation which would serve as a legal basis for the limitation of subsidized fuel consumption, she said.

"We hope the regulation would be issued in April or early May 2012," she said.

The regulation would be a follow-up to Presidential Regulation No. 15 of 2012 on the retail prices and consumers of certain fuels, she said adding President Susilo Bambang Yudhoyono signed the regulation on February 7, 2012.

(K007)

Editor: Ella Syafputri
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