Fuel Limitation: Still Long Way to Go

Rabu, 12 September 2012 | 10:33

Minister of Energy and Mineral Resources Jero Wacik urged the Downstream Oil and Gas Executive Agency (BPH Migas) to revoke the letter of limitation for subsidized fuel supply for fuel station in the area of toll roads, up-market residences, and big cities as well as maximum restriction of 10 liter per day.According to the Minister, BPH Migas is not allowed to arbitrarily issue a policy allowing restriction to supply subsidized fuel.

"This is a political policy that should be discussed among Parliament, Executives and public. Therefore, the Agency should discuss it with me first before they can stop or restrict the fuel supplies," he added during the sideline of Public Hearing with the Parliament, Monday (9/10/2012).

Minister Jero worries it would cause riot or public dissatisfaction in public "It potential to create chaos," he said very firmly.

Earlier, BPH Migas Director Djoko Iswanto said the Agency has submitted the letter to Pertamina on June 12, 2012 requesting reduction of subsidized fuel supplies for fuel station in areas of toll roads and elite residences, since the ratio quota for subsidized fuel is diminishing.

However, Pertamina didn't directly respond to the request since its approaching Eid ul-Fitr and then the second letter was sent on September 6, 2012.

The Head of BPH Migas Andy Sommeng stated the draft of regulation to rule subsidized fuel restriction in elite residences is still not finalized. "It was only a recommendation from our technical team and it should be discussed in the committee meeting. They have prepared the draft this month but it has not been determined," he added.

He can't explain the technical rules since the definition of luxury car is still debatable. "There are various kinds of luxury cars. Motorcycle owners considered Avanza as a luxury car."

BPH Migas will also set a guidance for local government regarding regulation on quota for subsidized fuel.

Director Djoko stated that the rules are set as such where allocation of subsidized fuel will reach the exact target since the quota is currently diminishing

Social impact

ReforMiner Institute Executive Director Pri Agung Rakhmanto of the opinion that BPH Migas' recommendation to restrict subsidized fuel consumption per vehicle should not be carried out when the subsidized fuel quota is almost diminishing.

He noticed that the government as well as The House have been so many times discussing those recommendations, but they are difficult to implement due to high political cost. "This option may potentially trig a complicated social impact in public."

At the very first time, quota for subsidized fuel this year of some 40 million kiloliter has been unrealistic, since only for last year it reached 41.7 million kiloliter. "Therefore what the Government should do is asking for additional quota approval to the House," he added. (T06/aph)

by Vega Aulia Pradipta, Arsyad Paripurna, Riendy Astria
source http://en.bisnis.com