Pertamina limits sales of subsidized fuel oils

Pertamina limits sales of subsidized fuel oils

Pertamina gas station (ANTARA/Rosa Panggabean)

Jakarta (ANTARA News) - The state-owned oil and gas company, PT Pertamina, has started limiting the sales of subsidized fuel oils for maintaining the consumption levels below the quota set at 46 million kiloliters in the 2014 revised budget.

"We will start limiting diesel fuel sales in Central Jakarta, starting August 1," Ali Mundakir, the companys vice president for communications, stated here on Friday.

Effective August 4, Pertamina will also sell subsidized diesel fuel in certain regions in Java, Sumatra, Kalimantan, and Bali from 8 a.m. to 6 p.m. only.

Emphasis will be laid on industrial, mining, and plantation areas, and also on areas around the ports that are vulnerable to smuggling, he pointed out.

"No time limit meanwhile will be applied on filling stations located along the main access roads used for logistic distribution," Ali added.

Sales or time restrictions that have been implemented in regions such as Batam, Bangka Belitung, and most of Kalimantan will be continued, he remarked.

Ali noted that starting August 4, the allocation of subsidized diesel fuel oil for fishermen will be also be cut by 20 percent, and its distribution will be prioritized for fishing boats weighing below 30 tons.

Starting August 6, all filling stations located along toll roads will stop selling subsidized gasoline and will only sell non-subsidized gasoline.

"We will ensure that the supply of non-subsidized gasoline such as pertamax, pertamax plus, and pertamina dex will be adequate," Ali emphasized.

Edy Hermantoro, the director general of oil and gas of the Ministry of Energy and Mineral Resources, and Andy N. Sommeng, the head of oil and gas downstream business regulator, BPH Migas, stated that the government will control the fuel supply in order to meet the target of 46 million kiloliters.

According to Pertamina, if restrictions were not implemented, the quota of subsidized diesel fuel oil set in the 2014 revised budget will be met on November 30 while gasoline on December 19.

The target of fuel oil consumption has been reduced from 48 million to 46 million kiloliters in line with the law on the 2014 budget.

To abide by the law, BPH Migas has released a circular regarding the limitation of subsidized diesel fuel and gasoline sales, so that the 46 million quota can be used until the end of the year.

The finance ministry has also released a letter notifying that it will not pay for any claims made for excess quota subsidy.

Reporting by Kelik Dewanto
(T.K007/H-YH/INE)
EDITED BY INE
(H-YH)
(T.SYS/B/KR-BSR/A/H-YH)

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