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View all search resultsEnergy Ministry proposes raising diesel fuel subsidy next year
The ministry suggested to raise fixed subsidy for diesel fuel to up to Rp 3,000 (18 US cents) per liter. Currently, the figure hovers at Rp 1,000 per liter.
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An attendant walks across a gas station belonging to state-owned energy holding company Pertamina in Kuningan, South Jakarta. (JP/Seto Wardhana)
T
he Energy and Mineral Resources Ministry is proposing to raise the subsidy for diesel fuel, as it seeks to narrow the gap between the market price and the one administered by the government.
The ministry has suggested raising the fixed subsidy for diesel fuel to up to Rp 3,000 (18 US cents) per liter. Currently, the figure hovers at Rp 1,000 per liter.
This only applies to subsidized diesel fuel with a Cetane Number (CN) of 48 that state-owned oil and gas firm Pertamina sells under the Solar brand.
If agreed by the Finance Ministry, it would be included in the 2025 state budget bill, which would also result in an increase in energy subsidy spending.
“In order to get the diesel fuel subsidy [to be distributed] right on target, [we] need support to increase the roles of agencies, state-owned enterprises and regional administrations in controlling and supervising the subsidized fuel consumption,” Energy Minister Arifin Tasrif told House Commission VII overseeing energy and mineral resources on Wednesday.
Read also: Govt, lawmakers agree to hike energy subsidy spending in 2024
Currently, the government requires Pertamina to sell Solar diesel fuel at Rp 6,800 per liter, almost half of its supposed market price of Rp 12,100 per liter.
