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Pertamina banned from reducing subsidized fuel supply
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Types of fuel available at Pertamina gas station. (Shutterstock.com/Sallehudin Ahmad)
T
he Energy and Mineral Resources Ministry has strongly warned state-owned energy firm Pertamina not to reduce the supply of subsidized fuels, Premium brand gasoline and Solar brand diesel fuel, to gas stations across the country.
Oil and gas director general Djoko Siswanto said in Jakarta on Thursday the government had clearly instructed the company to distribute certain amounts of subsidized fuels.
Under Downstream Oil and Gas Regulatory Agency (BPH Migas) Decree No. 41/P3JBKP/BPH Migas/KOM/ 2017, Pertamina is required to distribute 7.5 million kiloliters of Premium and 14.37 million kl of Solar in 2018, as well as prepare 1 million kl of each Premium and Solar.
“Soon after the stocks at gas stations run out, Pertamina has to add to the supply,” said Djoko as quoted by kontan.co.id.
Many gas stations in Greater Jakarta frequently run out of the subsidized fuels, forcing customers, including drivers of angkot (public minivans) to turn to non-subsidized fuel Pertalite. Certain Pertamina stations do not even sell Premium anymore.
A similar call was made by BPH Migas commissioner Hendry Achmad, saying the decree that was issued by the agency referred to Presidential Regulation No. 191/2014 on supply, distribution and retail prices of fuels.
Premium and Solar fuels are sold at Rp 6,550 (48 US cents) and Rp 5,150 respectively, while Pertalite, the cheaper non-subsidized fuel, is sold at Rp 7,800. (bbn)
