Unleaded premium available by April: Pertamina
JAKARTA (JP): Following the government's plan to initiate the removal of leaded gasoline from sale in the capital this year, the state-owned oil and gas company Pertamina will begin to supply unleaded premium by April 1, 2001.
Pertamina's information officer Ridwan Nyak Baik said on Monday that the unleaded premium would be supplied in phases over a three month period.
"Hopefully, Jakarta will be free of leaded gasoline by July. As for the price of the unleaded premium, we are waiting for the government's subsidy," Ridwan told The Jakarta Post by phone.
In view of growing air pollution in Indonesia's urban areas, the Minister of Mines and Energy issued a decree in October 1999 to completely phase out the use of leaded gasoline by 2003, with the process commencing in the capital in 2001.
Earlier, the State Ministry of Environment stated on Jan. 8 that the plan had been delayed until 2003 given the high number of vehicles using leaded fuel in Greater Jakarta.
Ridwan said 2003 would see nationwide implementation of the unleaded fuel plan.
Ridwan also called for rules requiring the compulsory use of devices to reduce the emission of hazardous substances from engines.
Lead is added to fuel to boost engine performance but has been proven to be a cause of environmental and health problems.
Health costs related to leaded gasoline are estimated at Rp 2 trillion (about US$210.5 million) annually.
The capital requires at least 8,000 kiloliters of leaded gasoline every day, with 97 percent of consumption being sales of premium. The number of vehicles, meanwhile, is estimated to be increasing at a rate of 5 percent to 12 percent a year in Jakarta.
Coordinator of the joint committee for the phasing out of leaded fuel Ahmad Safrudin has also supported the decision.
"We are still calculating the price (of gasoline) which will be announced next April," said Ahmad, who is also executive director of the Jakarta branch of the Indonesian Environmental Forum (Walhi).
To reduce octane levels in gasoline, Ahmad explained, more funds would be needed to import raw materials and modify Pertamina's refineries in Balongan, West Java, and Cilacap, in Central Java.
"The cost will increase the unleaded premium price by Rp 130 per liter, but we will try to discuss an alternative to apply incentives from the government, so that increases would not be necessary," Ahmad said.
Currently, premium is sold at Rp 1,100 per liter, while premix is set at Rp 1,700. Diesel fuel is Rp 800 per liter.
Ahmad said Pertamina would start experiments to reduce the lead content of gasoline this month.
"The process will be in line with the refinery modifications, which will take between 24 to 32 months. Meanwhile we can still use the existing installation, at least until 2003," Ahmad said.
He said that the project would cost approximately Rp 230 million, adding that Pertamina would still supply approximately 240 kiloliters of leaded gasoline per day.
Head of the gas stations division of the National Federation of Oil and Natural Gas Entrepreneurs, Sofyan Zakaria, said that federation members supported the decision. (07)