Govt mulls raising fuel quota

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.