TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Minister mulls subsidizing Pertamax for environment's sake
Energy and Mineral Resources Minister Ignasius Jonan has said that he is considering providing a fuel subsidy for fuels that are more eco-friendly than other fuels used widely throughout the country.
Change Size
A gas station employee serves motorists with Pertamax non-subsidized fuel at a Cikini gas station in Central Jakarta. (ANTARA FOTO/Sigid Kurniawan)
E
nergy and Mineral Resources Minister Ignasius Jonan said Tuesday he is considering subsidizing Pertamax gasoline to encourage people to use fuels with lower carbon emissions.
Pertamax, a type of gasoline produced by state-owned energy holding company Pertamina, has a research octane number of 92 and meets Euro IV standards for fuel.
“In the future, we need to consider a fuel subsidy for products that have a higher octane number or are more environmentally friendly,” he said, adding that the plan was likely to be proposed during deliberation of the 2020 state budget.
Currently, the government through Pertamina only subsidizes Premium-branded gasoline, which has a research octane number of 88, the lowest number on the market.
Jonan said the idea came from Gerindra Party lawmaker Kardaya Warnika, who said the effort to boost the consumption of green energy could work as long as prices were low.
“The people do not care whether they have to use Premium or Pertamax as long as the price is low. We subsidize Premium without considering its cost [on the environment]. It would be better if the price of Pertamax was cheaper than Premium,” Kardaya said.
Premium, which is currently sold for Rp 6,450 (46 US cents) per liter, had a market value of Rp 7,350 in 2017. Pertamax, meanwhile, is sold for Rp 9,850 per liter, making it 52.7 percent more expensive than Premium. (bbn)
