Subsidized fuel usage may reach 43.88 million kl in 2012

PT Pertamina said that the consumption of subsidized diesel fuel, premium gasoline and kerosene in Indonesia may reach 43.88 million kiloliters (kl) next year. According to the state oil and gas firm’s forecasts for the coming year, consumption of premium gasoline will increase by 8% and diesel fuel by 6% per year. Djaelani Sutomo, Pertamina’s director for marketing and business, reported that the consumption of subsidized fuel this year may reach 40.94 million kl or 1.11% above the 40.49 million kl quota. Indonesia’s growth targets of 6.4% in 2011 and 6.9% in 2012 will also result in increases in the use of subsidized fuels. Data obtained from BPH Migas, the downstream oil and gas regulator, revealed that from January to August 31, the consumption of subsidized fuels reached 27.25 million kl, a 67.5% increase from this year’s quota. Pertamina spokesman Mochamad Harun said, “Rising fuel prices have caused many consumers of non-subsidized fuels to turn to subsidized fuels due to the widening price disparity.” Pertamina said it is working with other institutions to monitor consumption and prevent violations in the distribution of subsidized fuels. (September 12, 2011)