PUBLIC URGED TO RESTRICT SUBSIDIZED FUEL CONSUMPTION

By Andi Abdussalam

Jakarta, Nov 30 (ANTARA) - The government has called on all Indonesians to restrict their consumption of subsidized fuel, switch to gas whenever necessary or possible, and use non-subsidized fuel such as Pertamax for their luxury cars.          "We should avoid fuel scarcity, as it could trigger social unrest. People should restrict their consumption of subsidized fuel and buy only as much as they need for the moment. If they usually buy 10 liters, they should not buy 100 liters, because such actions could trigger a rush. Our economy is good and we should maintain it," Coordinating Minister for Economic Affairs Hatta Rajasa said.          Although the government has increased the previously set quota of subsidized fuel from 40 million kilolitres to 44 million kilolitres, consumption of the commodity will still likely exceed the revised state budget quota this year. That is because the stocks of subsidized fuel, particularly premium gasoline, are running out, leading to long tailbacks at refilling stations in various regions across the country.            "We have set the quota but we ourselves are not able to abide by it. This means that there is something wrong and this should be monitored. We should find the best solution possible so that what happened in West Kutai in Kalimantan is not repeated in any other place," Hatta stated.          "Regions that are now ready to impose restrictions on consumption of subsidized fuel can do so. In areas like Pondok Indah and Menteng (both in Jakarta), nobody makes a fuss if there is no subsidized premium gasoline. However, in the case of West Kutai, a problem happened because people there cannot afford to buy Pertamax," he explained.          Energy and Mineral Resources Minister Jero Wacik has urged the public to switch from subsidized fuel to non-subsidized fuel due to the shortage of subsidized fuel supply until the end of this year.          "If the society and companies want to contribute to the country, they have to start using non-subsidized fuel, considering the lack of subsidized fuel supply," he said ahead of the meeting with the House of Representatives on Monday.          Wacik stated that subsidized fuel was supposed to be used only by those people who could not afford to purchase non-subsidized fuel.          "There is not enough subsidized fuel supply for this year, but I hope this condition does not cause any major disturbance in the country," he said.       "We have asked for 44 million kiloliters more, but the supply is being increasingly reduced. Therefore, if you think there is sufficient supply, it is an absolutely wrong assumption," Wacik pointed out.          Meanwhile, Deputy Minister for Energy Affairs Rudi Rubiandini urged owners of luxurious cars to use non-subsidized fuel because subsidized fuel quota would likely to be exhausted by December 24. "Have an empathy with those deserving the subsidy," he said.          The deputy minister stated that luxurious cars must use non-subsidized gasoline such as Pertamax and Pertamax Plus ¿at least to preserve their engines¿.      "A lot of the cars, however, are still using the subsidized premium gasoline despite the fact that it has a low octane rating," he added.          Rudi said luxury car owners should not buy subsidized gasoline till the end of the year ¿out of moral obligation¿     "We cannot force them to do it, but we can make an appeal" he continued.          Rudi said the government would stop selling subsidized gasoline in stations located in elite areas. "It would better if this system remains in place forever," Rudi added.          He said the government would make efforts to prevent a shortage of subsidized fuel. "Financially, it may not be possible to increase the quota, but the government certainly would not sit idle until December 24," Rudi pointed out.          Under the 2012 state budget, the government had set the quota of subsidized fuels at 40 million kilolitres. However, due to rising consumption, the quota was later raised to 44.04 million kilolitres in the revised 2012 state budget.          An upward trend in subsidized fuel consumption has led oil officials to predict that oil consumption would reach 45.373 million kilolitres by the end of this year.          Therefore, the government will propose increasing subsidized fuel oil quota to the House of Representatives, because the previously set quota is likely to be exhausted soon, Energy and Mineral Resources Minister Jero Wacik said on Friday.          "Our previous quota was 44 million kilolitres but we predict that subsidized fuel oil consumption will reach 45.2 million kilolitres at the end of the year. So, we will propose an additional quota of 1.2 million kilolitres to the House," he said.          Jero stated that the request would be made in anticipation of increased consumption in the run-up to Christmas Day and New Year's Eve festivities. "Actually, non-subsidized fuel is available. But we have run short of the subsidized one. Therefore, we are trying to restrict its distribution," the minister explained.          The minister said a few House members had shared their opinion of the plan. Therefore, he expressed optimism that the House would approve the proposed quota increase.***2*** (T.A014/INE/B003) (T.A014/A/KR-BSR/B003) 30-11-2012 21:31:17