Govt mulls raising fuel quota
The Jakarta Post, Jakarta,Kupang,Yogyakarta,Bandung
The government is considering raising the fuel quota for this year as it scrambles to arrest a fuel shortage beleaguering provinces across the country for the past few weeks.
It also appealed to the public at large on Tuesday to reduce fuel consumption.
State Minister for State Enterprises Sugiharto said the question of raising the fuel quota would be discussed soon with the House of Representatives.
"There have been differences between the government and the House over the fuel quota. A sufficient quota is needed, but at the same time efficiency efforts should be promoted," Sugiharto said at the State Palace.
He explained that this year's quota was not in line with real domestic demand, which has continued to rise over the past few years.
The House agreed to reduce the country's fuel quota for this year to 59.6 million kiloliters from 62.5 kiloliters last year in a bid to cut subsidy spending and force the public at large to use fuel more efficiently.
Based on the state budget, this year's fuel subsidy allocation was set at Rp 76.5 trillion (US$7.88 billion). However, due to rising global oil prices and higher demand, the required spending is likely to soar to over Rp 110 trillion.
The subsidy will only cover domestic demand for premium gasoline, diesel fuel and kerosene.
Sugiharto, however, stressed that although there would be an increase in the quota, the government would stick to its plan to limit the supply of premium gasoline and diesel fuel to gas stations at weekends.
Meanwhile, Jakarta Governor Sutiyoso called on people here to be thrifty in using fuel.
"The fuel supply here will be sufficient as long as residents are thrifty about using fuel," Sutiyoso told reporters at City Hall.
In Jakarta, many motorists gave up queuing for premium gasoline priced at Rp 2,400 per liter and purchased high-quality pertamax gasoline at Rp 4,000 per liter, as seen at gas stations on Jl. MT Haryono in Central Jakarta, and in Rawamangun and Prumpung in East Jakarta.
In Kupang, East Nusa Tenggara, motorists have begun to leave their vehicles at home as they failed to get premium gasoline.
Half of the city's public transportation vehicles and intercity buses had also stopped operating since Tuesday morning. Many fishing boats had also be left tied up.
Motorists complained that some small retailers had been taking advantage of the situation by raising prices up to Rp 7,500 per liter.
Similarly in Yogyakarta, the shortage of premium gasoline has resulted in the price soaring to Rp 4,000 from the normal price of between Rp 2,600 and Rp 2,700 per liter at dozens of gas stations in the city.
In Bandung, the shortage has forced gas stations to ration their customers to 75 liters per transaction.
Fearing possible disturbances as long lines of motorists queued at gas stations, West Java Police chief Insp. Gen. Edi Darnadi assigned at least two police officers to stand guard at every gas station.