The government forecasts consumption of subsidized fuels will surge by 10 percent from 38.6 million kiloliters this year to 42.55 million kiloliters in 2011.
Energy Minister Darwin Saleh told a hearing with the House of Representatives’ Commission VII on energy on Tuesday the increase would be inevitable if the fuel restriction and saving policy failed to take effect.
“If the redesign of our energy subsidy program from the current price subsidy to a more appropriate model runs well, national consumption of subsidized fuels will decline to 36.77 million kiloliters,” Darwin said as quoted by Antara news agency.
Downstream oil and gas regulator (BPH Migas) chief Tubagus Haryono said consumption of subsidized fuels would reach 42.55 million kiloliters if ships bearing Indonesian flag were allowed to consume subsidized fuel, the energy conversion program slowed and the number of vehicles skyrocketed.
The latest data from state oil and gas company PT Pertamina revealed that consumption of subsidized fuels reached 60.65 percent from the quota set at 36.77 million kiloliters after eight months this year.
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