Jakarta, Aug 25 (Antara) - The government's move to restrict subsidized
fuel sale to maintain quota, so that stock will not run out until the
end of the year, has sparked panic paying and queues at refilling
stations in several regions.
"People have the impression that stocks of subsidized fuels are running
out and that the government will raise fuel prices. This has triggered
hoarding and panic buying," Ikhsan Modjo, a politician of the Democrat
Party, told a TvOne Talkshow on Monday evening.
Media reports have stated that President-elect Joko Widodo, popularly
known as Jokowi, has plans to meet President Susilo Bambang Yudhoyono at
the end of this month to discuss fuel oil subsidy reduction in the
Draft 2015 State Budget.
Fuel subsidies have so far been considered a burden to the state budget.
"Yes, we want to obtain approval. We will hold a meeting first and then
understand its calculation," Jokowi was quoted by Tempo.co as saying on
Monday.
Ikhsan Modjo noted that the rumor that fuel oil prices will be raised
has resulted in panic buying and hoarding. He, however, categorically
did not agree if the price of subsidized fuel will be raised.
In the meantime, an oil observer, who is also National Democrat
(NasDem) Party politician, Kurtubi said he will support the government's
move to raise the price under certain conditions, such as banning the
export and import of oil through third parties, resuming the fuel-to-gas
conversion program, and developing gas stations along with refueling
stations.
"This should be done because the government's fiscal space is quite narrow," he pointed out.
"The people are suffering from hardship because fuel sale restriction
has narrowed the movement of their economic activities," Kurtubi said.
However, according to state-owned oil and gas firm Pertamina's
marketing and commercial director, panic has resulted from rumors of
fuel oil scarcity. It has led to queues at fuel refilling stations
(SBPUs) in several regions.
"The situation is not because of fuel scarcity. There are queues at
SBPUs because of panic buying," Hanung Budya said, adding that long
queues had been triggered by misleading rumors being spread among the
public.
"The distribution of subsidized fuels at SBPUs has been arranged so as
to adjust it to the prevailing quota," Hanung affirmed.
In the meantime, Ali Mundakir from Pertamina reported on Sunday that
there have been queues of customers wanting to buy subsidized fuels at
SBPUs due to the distribution arrangement.
"The
queues have resulted in subsidized fuel running out at SBPUs, and it
was not due to scarcity of stocks. It has happened because the volume of
distribution per day is arranged to maintain the quota, so that it will
not run out until the end of the year," Mundakir stated on Monday.
He explained that the current fuel stocks are at a secure level and
adequate to meet requirements until the end of this year.
Ali revealed that Pertamina had been carrying out distribution
arrangement on subsidized fuels since August 18 based on the daily
average quota for every SBPU.
The arrangement of subsidized diesel oil and premium gasoline
distribution has been carried out to ensure that diesel oil and premium
gasoline stocks will last until the end of 2014.
The Revised 2014 State Budget stipulates that the subsidized fuel
allocation should be reduced from 48 million kiloliters in the previous
budget to 46 million kiloliters per annum.
The government has raised fuel oil subsidy by 44.6 trillion from
Rp246.5 trillion in the Revised 2014 State Budget to Rp291.1 trillion in
the Draft 2015 State Budget.
Ali explained that with the deduction of fuel quota, only two options
will remain. The first option is to distribute subsidized fuels in a
normal way, with the consequence that the stocks run out before the year
end.
The other option is to arrange daily distribution, so that the
subsidized fuel quota will not run out before the year end.
"With this arrangement, we hope that people who own private cars will
be aware of the policy and begin consuming non-subsidized fuels," Ali
added.
The Downstream Oil and Gas Regulator (BPH Migas) had issued a circular
on July 24, 2014, regulating that beginning August, 2014, the sales of
subsidized premium gasoline and diesel oil will be restricted.
The government, therefore, beginning early this month has restricted
locations of refilling stations and time of transactions on subsidized
diesel oil and premium gasoline.
With effect from August 1, 2014, the government has banned the sale of
subsidized diesel oil at fuel stations in Central Jakarta.
From August 4, diesel oil can only be purchased between 6.00 a.m. and
6.00 p.m. in certain regions. The time restriction applies to the
regions or provinces that are prone to crime.
With regard to subsidized premium gasoline, the government has banned
sale from fuel stations located at toll road sections beginning August
6, 2014.
"From August 6, 2014, premium gasoline services by SBPUs in toll road
sections will be abolished," Ibrahim Hasyim of BPH Migas stated.
In response to the subsidy issue for fuel , Satya Widya Yudha of the
House of Representatives (DPR) Commission VII on energy affairs stated
that the next government should transform Indonesia's subsidized fuel
policy because the current policy over the past several years has
burdened state budget and narrowed fiscal space.
"Some believe that the government's fiscal space in the budget is
narrow. This is because the subsidized fuel paradigm has not
changed--where adjustment is made through rising fuel prices--to
providing subsidies to target people directly," Satya Widya Yudha said
on Monday.
He pointed out that the next government could have fiscal spaces to
implement programs that had been announced by the president-elect. The
government could save Rp200 trillion if it changes the fuel subsidy
paradigm.
"So, if it is converted to target subsidies, which have been proposed
by the Golkar Party, the government will be able to save Rp200 trillion,
which can be used for various expenditures," he asserted.
Satya added that with target subsidy paradigm, the government will only
focus on providing fuel subsidies to about 71 million people who
deserve it based on data in the office of the Coordinating Minister for
People's Welfare, while resuming its fuel-to-gas conversion programs.
***2***
(T.A014/INE)
EDITED BY INE
(T.A014/A/BESSR/A. Abdussalam) 25-08-2014 23:19:5 |
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