Jakarta,
Aug 28 (Antara) - Subsidized fuel supplies are expected to return to
normal, once state-owned oil and gas Pertamina lifts sale restrictions
that are causing long queues at refilling stations in several regions in
the past several days.
"We
have lifted the sale restriction policy to normalize supplies and hope
that long queues at refilling stations will end in the next three days
at the latest," Hanung Budya, marketing and commercial director of
Pertamina said, Wednesday.
Pertamina took the step after the government provided a guarantee to
bear up to 30 percent of the cost above national need if consumption
exceeded the subsidy quota, Hanung explained.
The government has set the subsidized fuel quota of 46 million
kiloliters in the revised 2014 state budget. However, this quota is
predicted to run out by the end of November or early in December 2014,
prompting Pertamina to rearrange its distribution so that it will not
finish until the end of the year.
This policy, however, caused a shortage of supplies, sparking panic
buying and long queues at refilling stations over the past few
days. "We hope the queues will return to normal in the next three
days," Hanung added.
He said that the government, through Coordinating Minister, Chairul
Tanjung, had assured Pertamina that it would bear 30 percent of the cost
of consumed supplies over national need.
"However, Pertamina is required to carry out measured control over
subsidized fuel consumption in the sense that there should be no
excessive buying, let alone fuel being bought for resale outside the
refilling stations," Hanung said.
The government had virtually set a subsidized fuel quota at 48 million
kiloliters in 2014. However, the quota was reduced through a revised
budget because it was considered to be too burdensome on the budget.
The
Revised 2014 State Budget stipulated that subsidized fuel allocation
should be reduced from 48 million kiloliters or about Rp300 trillion in
the previous budget to 46 million kiloliters or Rp246.5 trillion.
But this quota, based on consumption calculation, is not adequate to
meet increasing need for consumption and is expected to run out before
the end of 2014. In order to maintain the quota, Pertamina, through the
Downstream Oil and Gas Regulator (BPH) imposed sale volume restrictions.
BPH
Migas issued a circular, July 24, 2014, regulating that beginning
August, 2014, the sale of subsidized premium gasoline and diesel oil
would be restricted.
Therefore, beginning early this month, Pertamina has restricted the
sale of subsidized diesel oil and premium gasoline at certain hours and
certain refilling stations.
Pertamina has banned the sale of subsidized diesel oil at fuel stations in Central Jakarta.
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.
Pertamina has also banned the sale of premium gasoline at refilling stations on toll roads.
However, the Pertamina step sparked concerns from consumers and
triggered panic buying in many refilling stations in a number of regions
of the country in the past few days.
Meanwhile, a researcher has suggested that the government should take
immediate steps to overcome subsidized fuel scarcity.
Fuel scarcity in a number of regions could no longer be prevented,
Populis Institute researcher David K Alka said here, Wednesday.
It happened as a result of delay in the supply of subsidized fuel
supplies and because of the government policy to stick to the
consumption quota, he believed.
The scarcity was also related to the fact that consumption of
subsidized fuel exceeded the quota that had been set in the revised 2014
state budget, he said.
The researcher also regretted that the government was not ready to
anticipate fuel scarcity and failed to ensure adequate budgetary
allocation for supplying subsidized fuels to the people.
The quota of subsidized fuel set at 46 million kiloliters for 2014
could not be raised because the House's Budgetary Body and the
government had already agreed, Finance Minister, Chatib Basri, said
Wednesday in response to the problem. It was agreed upon when they
discussed the revised budget.
"Additional subsidized fuel quota cannot be permitted because the law
has been regulated like that. So, we have to stick to it," Chatib Basri
said.
In the beginning, the government had asked for a space in the law on
the Revised 2014 State Budget in case the consumption exceeded the 46
million kiloliter quota before the end of the year, but the House's
Budgetary Body had rejected it, Chatib reminded.
The
finance minister asked the Ministry of Energy and Mineral Resources to
maintain the quota allocation of 46 million kiloliters while taking
anticipatory measures.
"Of
course, Pertamina has a strategy on how to normalize the situation
while maintaining the quota. It must have its own calculation," the
minister said.
But
according to Pertamina, it does not have too many choices, after the
Rp300 trillion subsidy for about 48 million kiloliters of fuels in the
previous budget was reduced to Rp246.5 trillion or 46 million
kiloliters in the revised 2014 state budget.
Vice
President for Corporate Communication of Pertamina, Ali Mundakir,
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 the
consequence of queues at refilling stations every day due to shortage of
supplies.
Now
that the government has guaranteed that it will bear the cost if
consumption exceeds national needs, Pertamina has lifted its volume sale
restriction and hopes to reduce the problem of long queues.
Earlier, Coordinating Minister for Economic Affairs, Chairul Tanjung,
said in Dili, Timor Leste, Tuesday, that the government would guarantee
the adequacy of supplies and vehicles wanting to refill should not
necessarily snake down again at fuel stations.
"In not more than three days, queues will no longer exist," the chief economic minister said.
But it is not clear what steps the government will take and whether it
will raise the price of subsidized fuels in saying it will bear the
cost.
There has been a 'tug-of-war' over the raising of prices of subsidized
fuels. The debate is whether it will be the incumbent government which
ends its tenure next October 20 or the government of the president-elect
which will be inaugurated on the same date.
President-elect Joko Widodo said at the City Hall on Thursday he had
made a request to President Yudhoyono in Bali to raise the fuel oil
prices but Yudhoyono said it was not yet the correct time for raising
fuel prices now.
Jokowi said he was determined to raise fuel prices after his inauguration next October. ***2***
(T.A014/S012)
(INE)
EDITED BY INE
(T.A014/A/BESSR/Suharto) 28-08-2014 19:32: |
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