Oil consumption down after fuel price hike: Pertamina
Oil consumption down after fuel price hike: Pertamina
Fabiola Desy Unidjaja, The Jakarta Post, Jakarta
Following the recent fuel price increase, the country's fuel
consumption has declined by 16 percent compared to the previous
month.
State oil and gas company Pertamina said in a statement on
Wednesday that fuel consumption this month averaged 158,000
kiloliters per day, compared to last month's 189,700 kiloliters
per day.
The decreasing demand has meant that fuel consumption has
returned to a normal level. In the first two months of this year,
the demand increased by 15 percent, due to uncertainty pertaining
to the government's policy to increase fuel prices, thus causing
people to stockpile oil.
"Pertamina hopes fuel consumption will remain at this level to
help ease the strain on the company's budget as the crude oil
price has risen to above US$50 per barrel," the company said in a
statement.
Starting March 1, the government increased fuel prices by an
average of 29 percent, promising to redirect part of the money
saved from slashing the fuel subsidy into programs to assist the
poor. Most of the fund will be allocated for education programs,
the purchase of subsidized rice for the needy, rural
infrastructure projects and health programs.
The rising global crude oil price has burdened the state
budget since Indonesia imports almost a fifth of its domestic
fuel consumption of 1.1 million barrels per day.
Pertamina said kerosene demand has increased by 20 percent,
and suspects that some suppliers have bought the kerosene to be
mixed with fuel to gain profit.
"Pertamina must increase its surveillance of kerosene
distribution," the statement said.
The government has maintained the subsidy for kerosene, the
retail price of which is Rp 700 (7.5 U.S. cents) per liter, as it
is mostly used by the poor.
Since the introduction of the new fuel prices, Pertamina has
sanctioned 162 gas stations nationwide that were found to be
mixing the fuel or stockpiling the supply.
"Pertamina is building both civil and criminal cases against
these perpetrators and will continue to raid gas stations to
maintain the distribution line," the company said.
Fuel Consumption
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Feb 2005 March 2005 Total 2004
(in kiloliter)
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Automotive diesel fuel 81,900 57,800 26.9 million
Premium 45,100 40,200 16.2 million
Kerosene 31,400 39,500 11.7 million
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