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RON 90 fuel introduction "untimely" due to faltering economy and unfocused ministers: DPR deputy speaker
House of Representatives (DPR) deputy speaker Agus Hermanto commented that it is not the right time for the government to replace the low-specification Premium gasoline with registered octane number (RON) 90 fuel due to the various economic effects that it will trigger
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ouse of Representatives (DPR) deputy speaker Agus Hermanto commented that it is not the right time for the government to replace the low-specification Premium gasoline with registered octane number (RON) 90 fuel due to the various economic effects that it will trigger.
Because Indonesia has not yet produced enough RON 90 fuel, Agus said that doing so will force the government to increase fuel imports due to eventual supply problems. He said that there needs to be additional modifications in order to accommodate RON 90 fuel production.
'This is not the right time to replace Premium fuel with RON 90 fuel because it will force the government to increase imports. This isn't recommended in this current climate, with the rising dollar, faltering economy and ministers who care more about popularity, being the problems now,' he told reporters at the House of Representatives building on Tuesday.
Agus added that the additional burden of the untimely replacements will be put upon the public, due to rising costs and lack of readiness to accommodate the switch.
State energy company PT Pertamina announced plans to replace Premium fuel with RON 90 fuel last week, as early as next month. The elimination of the Premium fuel, which is specified as a RON 88 fuel, was also supported by the Energy and Mineral Resources Ministry's ad hoc team for the oil and gas sector.
The team argues that RON 88 gasoline, was hard to find in the market and is no longer used by other countries, which will increase Pertamina's procurement and blending costs. (++++)
