From: Antara NewsIndonesia`s 2012 fuel oil imports may reach 537,000 barrels/day
Jakarta (ANTARA News) - The Energy and Mineral Resources Ministry estimated that Indonesia`s 2012 fuel oil imports may reach 537,000 barrels per day.
Director of the Upstream Oil and Gas regulator (BP MIGAS) of the Energy and Mineral Resources Ministry Edy Hermantoro explaining Oil/Gas Director General Evita Legowo`s expose in a conference and oil/gas exhibition in Jakarta Tuesday said that Indonesia`s total need of fuel oil in 2012 had been predicted to reach 1.242 million barrels a day.
In the meantime, the capacity of the oil refineries of state oil and gas company PT Pertamina, PT Tri Wahana Utama, and PT Muba, is only 705,000 barrels per day.
"Thus Indonesia will be facing a fuel oil deficit of 537,000 barrels per day, or 43 pct of the total need for 1.242 million barrels per day," he said.
Edy said Indonesia needs at least two new refineries each with a capacity of 300,000 barrels per day, or a total of 600,000 barrels per day to cover up the shortage.
Of the total fuel oil need of 1.242 million barrels, 689,000 barrels per day or the equivalent of 40 million kiloliters, are subsidized, while the remaining 553,000 barrels per day are not subsidized.
The government and the House of Representatives had agreed that the volume of subsidized fuel oil of 2012 will amount to 40 million kiloliters.
The quota was estimated with the assumption that the regulations and policy on subsidized fuel oil are changed.
Without changing the regulations and policy, fuel oil consumption would exceed the quota.
Pertamina estimated that subsidized fuel oil consumption in 2012 may reach 43.882 million kiloliters on the condition of the absence of a policy on subsidized fuel oil regulations.
The growth of premium consumption used by Pertamina has been assumed to reach eight percent and kerosene six percent.
According to Pertamina, the consumption of subsidized fuel oil of 43.882 million kiloliters consisted of 26.912 million kiloliters of premium, 15.27 million kiloliters of kerosene, and 1.7 million kiloliters of petroleum.
In the meantime, the distribution of subsidized fuel oil according to quota consisted of 24.411 million kiloliters of premium, and 1.7 million kiloliters of kerosene.