Pertamina sees rise in fuel consumption this year
Pertamina sees rise in fuel consumption this year
Moch. N. Kurniawan, The Jakarta Post, Jakarta
State-owned oil and gas firm Pertamina said on Thursday it expected fuel consumption for this year to reach between 55 million kiloliters and 57 million kiloliters, higher than the target of 52.77 million kiloliters under the 2002 state budget.
Pertamina downstream director Muchsin Bahar said fuel consumption between January and April this year had reached 18.3 million kiloliters, higher than the state budget target of 17.56 million kiloliters for the period.
"Meanwhile, according to a member of the House of Representatives, some areas, including Riau, are now experiencing a fuel shortage,"
"Thus, fuel consumption will increase to around that figure (55-57 million kiloliters)," he told reporters on the sidelines of a hearing with the House of Representatives.
He said Pertamina and the government were still discussing who would cover the expenses for the purchase of the extra fuel.
"If we (Pertamina) must pay for the extra fuel, our financial performance will weaken," Muchsin warned.
According to him, Pertamina spends about Rp 1 trillion to produce or import one million kiloliters of fuel. Thus, Pertamina might have to provide an extra Rp 4.3 trillion to cover fuel supplies this year.
Under the state budget, Pertamina is allowed to distribute up to 52.77 million kiloliters of fuel this year for which the government has allocated a total subsidy of Rp 30.37 trillion (US$3.06 billion).
Any extra fuel demand will raise the fuel subsidy, thus affecting the state budget. Otherwise, Pertamina has to use its own fund to pay for the extra fuel.
Last year, fuel consumption reached 54.6 million kiloliters, exceeding the state budget target of 52.7 million kiloliters.
However, the government and the House later agreed to raise the fuel subsidy, thus Pertamina did not have to shoulder a new financial burden that year.
Pertamina still imports 15 percent of the country's fuel needs due to the limited capacity of its refineries.
Meanwhile, legislator M. Husni Thamrin of the Golkar faction said the House would not decide whether to raise fuel subsidy until it received the results of the independent survey by state- owned Surveyor Indonesia on the country's fuel consumption.
"We have yet to receive the results of the survey. It's still in the government's hands," he said.
At the hearing, Pertamina president Baihaki Hakim said he expected next year's fuel consumption to reach 61.8 million kiloliters and fuel subsidy to be set at Rp 21.05 trillion.
According to him, the country's oil output for next year would stay at 1.3 million barrels per day, from which the government would receive about Rp 44 trillion.
Combined with revenue from gas, which is projected at Rp 25 trillion next year, the government would collect a total of Rp 69 trillion from the oil and gas sector, Baihaki said, adding that the calculation was based on an exchange rate of Rp 9,500 per U.S. dollar and a crude price of $19 per barrel.