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Infrastructure remains obstacle for one-fuel price policy: Pertamina
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Workers are seen on an offshore rig belonging to Pertamina Hulu Energi (PHE) in East Java’s Madura. (Antara/Zabur Karuru)
T
he country’s lack of infrastructure remains the bane of the government’s mission to implement its one- fuel price policy.
Although the government hoped Pertamina could implement the policy nationwide by the end of the year, the firm stood its ground to do it in phases because many regions lacked the proper infrastructure, said Pertamina senior vice president for fuel marketing and distribution, Gigih Wahyu Hari Irianto.
“The government hopes we could complete it all by the end of this year, but it really depends on the [region’s] infrastructure, which is out of our control,” he told reporters at a press conference on Tuesday.
(Read also: Risk of gas shortage haunts Indonesia)
One hundred and fifty regions are included in the one-fuel price program, in which the price of subsidized gasoline known as Premium is Rp 6,450 (48 US cents) per liter and subsidized diesel, is priced at Rp 5,150 per liter.
Without the policy, the prices of Premium in those remote areas could range between Rp 8,000 and Rp 15,000 per liter, while the price for Solar was between Rp 7,000 and Rp 18,000 per liter.
Pertamina has implemented the program on Batu Island in North Sumatra, Central Siberut in West Sumatra, Jepara in Central Java, Raas Island in East Java, Tanjung Pengaus in West Nusa Tenggara, Waingapu in East Nusa Tenggara, Wangi-wangi in Southeast Sulawesi, Moswaren in West Papua and Long Apari in East Kalimantan. (bbn)
