Pertamina to launch fuel policy campaign<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
The state-owned oil and gas company Pertamina is still waiting
\nfor government instructions to launch an information campaign
\nabout its confusing new fuel price hike policy.<\/p>\n
\"We have yet to receive such orders (about the policy
\ncampaign)...we'll coordinate with the government to discuss it
\nsoon,\" he told The Jakarta Post over the weekend.<\/p>\n
\"But we are ready to carry out the campaign once the
\ngovernment instructs us.\"<\/p>\n
The government raised fuel prices by an average of 22 percent
\nlast week, and for the first time pegged fuel products to prices
\nin neighboring Singapore.<\/p>\n
Starting March, fuel prices, except kerosene for households
\nand small industry, would be set monthly based on the Mid Oil
\nPlatt's Singapore (MOPS) price. To anticipate sharp fluctuations
\nin the international market, the government has set a floor price
\nand a ceiling price.<\/p>\n
The new policy, aimed at easing the burden on the state budget
\nand to help curb fuel smuggling out of the country, has created
\nsome confusion. Initially, some gas stations were seen selling
\nfuel at the ceiling price. Legislators were also confused saying
\nthat they only gave approval in November last year for an average
\n30 percent fuel price rise this year, not setting the price to
\nthe MOPS prices. The House of Representatives plans to summon
\nMinister of Energy and Mineral Resources Purnomo Yusgiantoro this
\nweek to clarify the matter.<\/p>\n
Economists fear that the new policy could trigger people to
\nhoard goods and fuel products amid hopes of higher international
\noil prices in the future.<\/p>\n
Elsewhere, Ridwan said Pertamina was ready to allocate some
\nfunds to launch the dissemination program, but has yet to decide
\non the size of the budget.<\/p>\n
\"Not to disrespect other fuel customers, we might mainly
\ntarget kerosene customers,\" he said.<\/p>\n
Pertamina could allocate up to Rp 5 billion (US$480,000) for
\nthe policy campaign directed at the kerosene-user group.<\/p>\n
He said that Rp 4 billion could be spend on television
\nadvertising, and another Rp 1 billion on radio advertising.<\/p>\n
The country's fuel consumption this year is expected to reach
\nabout 52.77 million kiloliters.<\/p>\n
Of the total consumption, automotive diesel oil consumption is
\n19.97 million kiloliters, premium gasoline 12.9 million
\nkiloliters, kerosene 11.3 million kiloliters, fuel oil 6.85
\nmillion kiloliters and industrial diesel oil 1.7 million
\nkiloliters.<\/p>\n
Ridwan said Pertamina would continue to give information
\nleaflets to all gas stations in the country every month to ensure
\nthat other fuel users recognized the new prices.<\/p>\n
Ridwan said the current mounting confusion about the new fuel
\nprice hike policy was normal due to the lack of sufficient
\ninformation in the beginning.<\/p>\n
\"The confusion will become less and less when they receive
\nmore and more information,\" he said.<\/p>",
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