GOVT URGED TO INCREASE SUBSIDIZED FUEL QUOTA

By Andi Abdussalam

Jakarta, June 23 (ANTARA) - Amid its efforts to keep its subsidized fuel quota ar 38.6 million kiloliters as set in the 2011 state budget , the government is now urged to provide for an addition to the  quota as supplies of the commodity in a number of regions are running low.          A number of regions such as Lampung and Kalimantan have been facing shortages of fuel oils of late because supplies have been reduced as consumption has exceeded 50 percent of the quota.         Finance Minister Agus Martowadojo said recently the subsidized fuel oil quota amounting to 38.6 million kiloliters must be maintained in order not to burden the 2011 state budget.  "Last year, the use of subsidized fuel oil exceeded the target to reach up to 42 million kiloliters, but now we ask that the 38.6 million kiloliters should be maintained," the minister said.         However, a number of regions have run shortages of supplies.  Therefore, the Public Policy Study Center (Puskepi) called on the government to increase the subsidized fuel quota in order to overcome shortages of fuel oils.         The same call was also made by state-owned oil and gas firm PT Pertamina which has asked the government to add two million  more kiloliters of subsidized fuel oils in order to overcome shortages that have occurred in the field lately.          According to Puskpi director Sofyano Zakaria   here on Wednesday the shortages of fuel oils in a number of regions of late were due to limited supplies since consumption had exceeded the quota of subsidy based on the 2011 budget.  "If the fuel oil consumption has exceeded the set quota the government should increase it in order to prevent shortages," he said.          Pertamina spokesman M Harun said the company had earlier predicted that subsidized fuel consumption this year would reach 40.5 million kiloliters. The two million kiloliters are higher than the amount set in the state budget for 2011 at 38.6 million kiloliters. "Our estimate is that consumption will reach 40.5 million kiloliters until the end of the years," he said.          Sofyano said that the government should discuss the matter with the House of Representatives (DPR) soon, particularly when the 2011 revised budget was deliberated.  Besides that, he said, state-owned oil and gas firm Pertamina should also arrange the distribution of subsidized fuel oils tightly. "I think it would be easy to raise the quota because shortages still happen locally and not yet nationally," he added.          The government has allocated 38.6 million kiloliters as subsidized fuels in the 2011 state budget, which consisted of 23.19 million kiloliters of gasoline premium, 2.32 million kiloliters of kerosene and 13.08 million kiloliters of diesel oil.          According to Harun, his side has informed the Down Stream Oil Regulating Agency (BPH Migas) about its estimate on the required subsidized fuel addition.          Based on the procedures the BPH Migas would proposed the required amount of additional subsidized quota to the ministry of energy and mineral resources (ESDM) before it was discussed inter-departmentally and submitted to the House of Representatives (DPR) in the 2011 revised state budget deliberations.          The ESDM ministry has earlier predicted that the subsidized fuel oil consumption in 2011 would reach 41.42 kiloliters or far above the budget quota.          Up to May 31, subsidized fuel oil consumption has been estimated at 15.46 million kiloliters.          Harun said that the shortages of subsidized fuel oils happened in a number of regions such as Lampung and South Kalimantan. The shortages happened because there is deviation in its use such as the use of subsidized fuel oils for industry or plantations.          He said that there many refueling stations which were forced to sell subsidized fuel to those who bought it using jerry cans drums. "In this case, fuels will always finish, no matter how much Pertamina has supplied," he said.          Until May 31, 2011, the realization of subsidized fuel oil consumptions in Lampung has exceeded 15 percent of its quota, despite the fact that Pertamina has tried to supply the province based on its quota set at the state budget.          The quota surplus has actually been predicted before because the assumption for subsidized fuel consumption for 2011 was set at the same volume of that consumed in 2010.  The subsidized fuel oil quota at the 2011 state budget was set at 38.6 million kiloliters, which consisted of 23.19 kiloliters of gasoline premium and 2.32 million kiloliters of kerosene and 12.86 million kiloliters of diesel.          The volume of subsidized fuel oil set at the 2011 state budget is not far from the realized subsidized fuel consumption in 2010 which was 38.4 million kiloliters, where gasoline premium accounted for 23.13 million kiloliters, kerosene 2.39 million kiloliters and diesel oil 12.86 kiloliters.          On the other hand, consumption will surely increase in line with the increasing number of vehicles and improvement of the economy. The increase in the quota is also caused by high disparity between the price of subsidized fuel oils and non-subsidy fuels.***5*** (T.A014/A/HAJM/22:10/a014) 23-06-2011 23:0