Pertamina to launch fuel policy campaign
Pertamina to launch fuel policy campaign
Moch. N. Kurniawan, The Jakarta Post, Jakarta
The state-owned oil and gas company Pertamina is still waiting
for government instructions to launch an information campaign
about its confusing new fuel price hike policy.
"We have yet to receive such orders (about the policy
campaign)...we'll coordinate with the government to discuss it
soon," he told The Jakarta Post over the weekend.
"But we are ready to carry out the campaign once the
government instructs us."
The government raised fuel prices by an average of 22 percent
last week, and for the first time pegged fuel products to prices
in neighboring Singapore.
Starting March, fuel prices, except kerosene for households
and small industry, would be set monthly based on the Mid Oil
Platt's Singapore (MOPS) price. To anticipate sharp fluctuations
in the international market, the government has set a floor price
and a ceiling price.
The new policy, aimed at easing the burden on the state budget
and to help curb fuel smuggling out of the country, has created
some confusion. Initially, some gas stations were seen selling
fuel at the ceiling price. Legislators were also confused saying
that they only gave approval in November last year for an average
30 percent fuel price rise this year, not setting the price to
the MOPS prices. The House of Representatives plans to summon
Minister of Energy and Mineral Resources Purnomo Yusgiantoro this
week to clarify the matter.
Economists fear that the new policy could trigger people to
hoard goods and fuel products amid hopes of higher international
oil prices in the future.
Elsewhere, Ridwan said Pertamina was ready to allocate some
funds to launch the dissemination program, but has yet to decide
on the size of the budget.
"Not to disrespect other fuel customers, we might mainly
target kerosene customers," he said.
Pertamina could allocate up to Rp 5 billion (US$480,000) for
the policy campaign directed at the kerosene-user group.
He said that Rp 4 billion could be spend on television
advertising, and another Rp 1 billion on radio advertising.
The country's fuel consumption this year is expected to reach
about 52.77 million kiloliters.
Of the total consumption, automotive diesel oil consumption is
19.97 million kiloliters, premium gasoline 12.9 million
kiloliters, kerosene 11.3 million kiloliters, fuel oil 6.85
million kiloliters and industrial diesel oil 1.7 million
kiloliters.
Ridwan said Pertamina would continue to give information
leaflets to all gas stations in the country every month to ensure
that other fuel users recognized the new prices.
Ridwan said the current mounting confusion about the new fuel
price hike policy was normal due to the lack of sufficient
information in the beginning.
"The confusion will become less and less when they receive
more and more information," he said.