Bali Promotion Center

Bali Promotion Center
Bali Promotion Center Media Promosi Online

April 24, 2012

restrictions on the use of subsidized gasoline as of May 1, 2012

Jakarta (ANTARA News) - Chief Economic Minister Hatta Rajasa said that the government would not implement its restrictions on the use of subsidized gasoline as of May 1, as preparations for the implementation are still underway.

"We will not as yet do it on May 1. We will just conduct the expose today. (In the expose) the energy minister will tell the technical details and the President will listen to them. Only after that will we do it. It will take one, two, three or more days (before it can be done). So, it will not as yet be implemented as of May 1," the minister commented before proceeding to attend a limited cabinet meeting on the economy called by President Susilo Bambang Yudhoyono here on Tuesday.

Hatta remarked that the government still had to study various available options and "out of them we will find the one with the least negative impact."

As has been reported so far, the government is considering imposing restrictions on the use of subsidized gasoline so that its quota set at 40 million kiloliters per year in the revised 2012 budget will not be exceeded.

The options being studied so far include prohibiting the use of gasoline in official cars and private cars with certain engine capacities and the sale of subsidized gasoline in posh areas.

The government had to resort to such restrictions after it failed to increase the price of subsidized gasoline from April 1 onwards following opposition from the House of Representatives to the proposed fuel subsidy cuts.

With the price of subsidized gasoline remaining the same, the gap between it and the price of non-subsidized gasoline has further widened, in line with the increasing world crude price.

The situation has caused the government to express concern that if more motorists turn to subsidized fuel, the subsidy will swell, resulting in more pressure on the budget.

Meanwhile, the Director General of Oil and Gas of the Ministry of Energy, Evita Legowo, reported that filling stations in Jakarta and the nearby areas of Bogor, Depok, Tangerang and Bekasi (Jabodetabek) are ready to support the restriction plan.

"SPBUs in Jabodetabek have been ready to sell (non-subsidized) pertamax gasoline since last year. And efforts would be undertaken in stages to prepare all SPBUs in Java and Bali for it," she added. (*)
Editor: Heru