Indonesian government to control use of subsidized fuels

The Indonesian government announced that it will proceed with plans to control the use of subsidized fuels this year. During a parliamentary meeting, Director General of Oil and Gas at the Energy and Mineral Resources Ministry, Evita Legowo, said that the proposed quota of subsidized fuels remains at 40 million kiloliters, as stated in the revised 2012 state budget. “It will be difficult to achieve a subsidized fuel quota of 40 million kiloliters if we do not control it (the use of subsidized fuels),” she said. Legowo explained that the program will ensure that subsidized fuels would only be sold to those entitled to them and that it would complement the government`s plan to increase the price of subsidized fuels by Rp1,500 (US$0.16) a liter by April 1. “We will also reduce the use of subsidized fuels in elite regions and on toll roads,” she added. State-owned oil and gas company Pertamina said that the fuel consumption in January and February this year grew by 12% compared to the same period in 2011. (March 13, 2012)