Pertamina cuts supply for quota
Leony Aurora and Rendi A. Witular, The Jakarta Post, Jakarta
State oil and gas firm PT Pertamina has reduced premium gasoline supply in trial periods in major cities, including Jakarta and Surabaya, and is monitoring the public reaction and response to the move before its full implementation.
Head of Pertamina's fuel division Achmad Faisal said the plan was aimed at putting national fuel consumption on a par with the quota set by the government.
"We lowered supply by 5 percent," he said on Monday.
"We will supply more Pertamax to cover the demand," he added, referring to the high-quality gasoline sold for Rp 4,000 a liter.
Eventually, Pertamina aims to decrease premium gasoline supply, sold at Rp 2,400 (24 U.S. cents) per liter, by up to 10 percent on weekends.
Reduced supply forced motorcyclists and car owners to queue up at some gas stations in the capital on Monday. Some lined up only to be disappointed by the "run out of gas" sign posted at several gas stations.
In the first five months of this year, consumption of premium gasoline nationwide was 10 percent higher than its quota, said Faisal. Kerosene use was 4 percent more than permitted while diesel fuel was in accordance with the quota.
"We have been providing gas stations with more fuel than what they should get due to strong demand," he said.
The government has set a quota of 59.6 million kiloliters (kl) for this year's domestic fuel consumption. The quota was used to calculate a fuel subsidy of Rp 76.5 trillion in the revised 2005 state budget recently approved by the House of Representatives.
The total amount of fuel -- comprising 15.17 million kl of premium gasoline and 26.29 kl of diesel fuel -- is lower than last year's realized consumption of 62 million kl.
Meanwhile, Vice President Jusuf Kalla said the current high fuel consumption could drive up this year's quota by 5 percent to 62.5 million kl, forcing the government to consider raising the fuel subsidy.
"The price of oil is very high. Therefore, the public should not use fuel for unproductive purposes," he said.
The price of Brent North Sea crude oil for delivery in August reached US$57.52 per barrel, lower than last Friday's $59.48 a barrel.
"The government will have to consult the House to revise the state budget legislation to raise the subsidy," he said.
The government is currently preparing a fuel-saving ruling -- which would include progressive tax for automobiles as well as a cut in the use of electricity for highway lights, advertising billboards and shopping malls.
Separately, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Pertamina would have to bear the burden should fuel consumption go higher than the government-set quota.
"Pertamina has to fund the volume outside the quota itself," he said.
The state oil company would carry out corporate policies, such as the weekend's premium gasoline cut, to suppress consumption, he added.
However, Faisal said Pertamina would consider public reaction to the trials. "It is not an official policy yet," he said.