Indonesia to reduce use of subsidized 88 RON

Indonesia’s Oil Ministry said the government is set to reduce consumption of subsidized 88 RON gasoline this year by as much as 5.8 million-6.21 kiloliters. “We estimate that we can cut at least 5.8 million kiloliters [of subsidized 88 RON gasoline] out of the total volume of 40 million kiloliters [of all subsidized fuel] this year. If we don’t do anything, the [total subsidized] fuel consumption could exceed the quota and reach 43.7 million kiloliters,” Evita Herawati Legowo, oil and gas director general at the Energy and Mines Ministry, explained at a parliamentary hearing in mid-January. To be able to reduce consumption of 88 RON gasoline by as much as 6.21 million kiloliters, 5.8 million kiloliters would have to be removed from the subsidized fuel pool; and the use of compressed natural gas (CNG) and liquid gas for vehicle (LGV) would reduce the consumption of 88 RON gasoline by 0.18 million kiloliters and 0.23 million kiloliters, respectively. The government also plans to build 108 LGV and 54 CNG pumps in Java and Bali this year. (January 16, 2012)