No fuel? Don't panic, says SBY

As the gasoline shortage worsened across the country on Wednesday, President Susilo Bambang Yudhoyono told people not to panic, saying the government was gradually increasing the country's supplies, which would be back to normal soon.

Susilo said the government was also drafting regulations on energy saving and plans for alternative power generation.

"Please, don't panic. Don't bring jerrycans to gas stations. I assure you that fuel supplies will be back to normal soon," he said on Wednesday.

"We're trying to curb fuel consumption, particularly for unnecessary purposes. That will take some time. The fuel saving program is for a long-term period."

Susilo met with officials from the People's Consultative Assembly, the House of Representatives, the Regional Representatives Council, the Supreme Court, the Supreme Audit Agency and the Central Bank to discuss the shortages and the ballooning cost of the government's fuel subsidy.

The government is trying to bring the country's fuel supplies back to their normal level of an average of 22 days in reserve, from the current 18 days. It has ordered all state and government institutions -- including the National Police and the Indonesian Military -- to start saving fuel in their operations.

"I will explain more to the public about the fuel problem soon, and I will also call on people to reduce their fuel consumption to a moderate level so that we can meet the fuel subsidy allocations in the state budget," Susilo said.

Indonesia is facing fuel supply problems due to increasing domestic demand and rising global oil prices. The current demand for oil is 10 percent higher than this year's 59.6 million kiloliter production target set by the government.

Increasing oil prices earlier forced the government to revise up the amount that it spent on the national fuel subsidy, from Rp 19 trillion (US$1.94 billion) to Rp 76.5 trillion, assuming global oil prices averaging $45 a barrel. While it saved some money by cutting subsidies for certain petroleum products earlier this year, global prices have risen past the $45 mark and are currently hovering around $60. -- JP