The government has postponed a much-mulled plan to limit subsidized fuels distribution, which was supposed to be implemented beginning Sept. 1, for indefinite time, saying the policy is still “too drastic” to be implemented now.
“The government acts very carefully in taking actions considered too drastic. As to question whether the government will impose the controlling now, with the current situation, the government is not heading to this decision,” Energy and Mineral Resources Minister Darwin Zahedy Saleh said Tuesday.
The minister said that the government would take other meaures to ensure that the subsidized fuel consumption will not exceed the regulated quota.
The state budget caps the consumption of the subsidized fuels at 36.5 million kiloliters this year.
But, based on the soaring consumption in the first semester, downstream oil and gas regulator BPHMigas estimates the actual consumption could exceed 40 million kiloliters by the end of this year.
The ministry has mulled several alternative policies to anticipate the high consumption.
One of controlling mechanisms widely announced by the ministry was to impose a ban all private cars produced in 2005 or later from using subsidized fuels.
The ministry said the limitation would reduce consumption of gasoline by 2.3 million kiloliters this year if the regulation was implemented on Sept. 1 and save subsidy by between Rp 8 to 10 trillion.
Far earlier, the government mulled at using a smart card, electronic card designed to keep track of the amount of subsidized fuel an individual purchases, to control the consumption.
However, as of today, the card has been applied only at feasibility study level.
The government also planned to ask state oil and gas firm PT Pertamina, the biggest distributor of subsidized fuels, to reduce the number of fuel stations offering subsidized fuels.
Darwin said he could not mention the exact time target for the implementation of the concrete controlling mechanisms.
“However, will hold soft campaign, for example at fuel stations, to make the public aware that the subsidized fuels are suppossed to go to our low income people,” he said.
Even though the policy time line is not clear yet, the government proposed small volume quota of subsidized fuels for 2011.
The government proposed the quota at 36.77 million kiloliters. Without the policy, the government said the subsidized fuels consumption would reach 42.56 million kiloliters.
On Sept. 1, BPHMigas has appointed PT Aneka Kimia Raya Corporindo (AKR) to accompany state oil and gas company PT Pertamina in distributing subsidized fuels.
“The volume of the subsidized fuels to be distributed by AKR is 102,565 kiloliters or 0.28 percent of the total quota,” BPHMigas’s chairman Tubagus Hariyono
AKR will be only assigned to distribute limited amount of Premium gasoline in the selected areas, including Deli Serdang, Medan, Central Lampung, South Lampung, East Lampung, North Lampung, Bandarlampung, Banjarmasin, and Pontianak.
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