Pertamina sees rise in fuel consumption this year<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
State-owned oil and gas firm Pertamina said on Thursday it
\nexpected fuel consumption for this year to reach between 55
\nmillion kiloliters and 57 million kiloliters, higher than the
\ntarget of 52.77 million kiloliters under the 2002 state budget.<\/p>\n
Pertamina downstream director Muchsin Bahar said fuel
\nconsumption between January and April this year had reached 18.3
\nmillion kiloliters, higher than the state budget target of 17.56
\nmillion kiloliters for the period.<\/p>\n
\"Meanwhile, according to a member of the House of
\nRepresentatives, some areas, including Riau, are now experiencing
\na fuel shortage,\"<\/p>\n
\"Thus, fuel consumption will increase to around that figure
\n(55-57 million kiloliters),\" he told reporters on the sidelines
\nof a hearing with the House of Representatives.<\/p>\n
He said Pertamina and the government were still discussing who
\nwould cover the expenses for the purchase of the extra fuel.<\/p>\n
\"If we (Pertamina) must pay for the extra fuel, our financial
\nperformance will weaken,\" Muchsin warned.<\/p>\n
According to him, Pertamina spends about Rp 1 trillion to
\nproduce or import one million kiloliters of fuel. Thus, Pertamina
\nmight have to provide an extra Rp 4.3 trillion to cover fuel
\nsupplies this year.<\/p>\n
Under the state budget, Pertamina is allowed to distribute up
\nto 52.77 million kiloliters of fuel this year for which the
\ngovernment has allocated a total subsidy of Rp 30.37 trillion
\n(US$3.06 billion).<\/p>\n
Any extra fuel demand will raise the fuel subsidy, thus
\naffecting the state budget. Otherwise, Pertamina has to use its
\nown fund to pay for the extra fuel.<\/p>\n
Last year, fuel consumption reached 54.6 million kiloliters,
\nexceeding the state budget target of 52.7 million kiloliters.<\/p>\n
However, the government and the House later agreed to raise
\nthe fuel subsidy, thus Pertamina did not have to shoulder a new
\nfinancial burden that year.<\/p>\n
Pertamina still imports 15 percent of the country's fuel needs
\ndue to the limited capacity of its refineries.<\/p>\n
Meanwhile, legislator M. Husni Thamrin of the Golkar faction
\nsaid the House would not decide whether to raise fuel subsidy
\nuntil it received the results of the independent survey by state-
\nowned Surveyor Indonesia on the country's fuel consumption.<\/p>\n
\"We have yet to receive the results of the survey. It's still
\nin the government's hands,\" he said.<\/p>\n
At the hearing, Pertamina president Baihaki Hakim said he
\nexpected next year's fuel consumption to reach 61.8 million
\nkiloliters and fuel subsidy to be set at Rp 21.05 trillion.<\/p>\n
According to him, the country's oil output for next year would
\nstay at 1.3 million barrels per day, from which the government
\nwould receive about Rp 44 trillion.<\/p>\n
Combined with revenue from gas, which is projected at Rp 25
\ntrillion next year, the government would collect a total of Rp 69
\ntrillion from the oil and gas sector, Baihaki said, adding that
\nthe calculation was based on an exchange rate of Rp 9,500 per
\nU.S. dollar and a crude price of $19 per barrel.<\/p>",
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