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Govt may restrict subsidized fuel sales on Oct. 1, energy minister says
The government has signaled that it will enact subsidized fuel restrictions, but it has yet to make a decision on the matter.
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State-owned oil and gas giant Pertamina requires customers to register their vehicle to continue using subsidized fuel. (Pertamina/Public Relation)
The government may restrict the sale of subsidized fuels starting Oct. 1 to reign in subsidy spending.
The plan is set to affect state-owned oil and gas company Pertamina’s subsidized RON 90 Pertalite gasoline and its Solar CN 48 diesel fuel.
“Once the rules are issued, we will have a period for familiarization, and that is currently under discussion,” Energy and Mineral Resources Minister Bahlil Lahadalia said on Tuesday, as quoted from Tempo.
Read also: Energy subsidies may be cut next year, budget talks suggest
Bahlil said that the ministry plans to enforce the stipulation through a new ministerial regulation revising Presidential Regulation No. 191/2014.
Currently, there are no regulations specifying who is entitled to purchase Pertalite, while the existing presidential regulation only governs the restriction on Solar-branded diesel.
The government defended the plan stressing that it aims to ensure subsidies only benefit low-income earners and prevent wealthier individuals from taking advantage of the scheme, which in turn could allow the country to spend less on the subsidy.
