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.