Pertamina to Stop Selling Subsidized Fuel if Quota is Exhausted

KATADATA ? PT Pertamina (Persero) said that it will stop selling subsidized premium fuel if its quota is used up before the end of this year. It will select this option if the government doesn?t come up with solutions to this problem.

?We?re still waiting for a solution as promised by CT (Coordinating Minister for Economic Affairs Chairul Tanjung) if the consumption of subsidized fuel has exceeded its quota. But just in case it happens, we will sell non-subsidized fuel,? said Pertamina?s Senior Vice President of Fuel Marketing and Distribution Suhartoko, to Katadata, on Thursday (9/3).

According to Suhartoko, Pertamina is unable to bear the cost of excess subsidized fuel consumption. After all, the Coordinating Minister for Economic Affairs has given assurance to Pertamina in case the distribution of subsidized fuel has exceeded its allocated quota.

If we look at last year?s subsidized fuel consumption that reached 46.3 million kiloliters, Suhartoko doubts that this year?s subsidized fuel consumption will not exceed its current quota of 46 million kiloliters. It still has sufficient supplies until October, but afterwards the quota may be exhausted.  

?If we don?t put a limit on the distribution (of subsidized fuel), I don?t think the 46 million kiloliters quota will last until the end of the year,? he said.

The subsidized fuel quota is likely to be exceeded because its consumption is already at a high level even before the quota was reduced by 2 million kiloliters in the Revised 2014 State Budget on June 18th, 2014. Before the revised state budget was enacted, the quota of subsidized fuel distributed by Pertamina was pegged at 48 million kiloliters.

According to data compiled by Pertamina, the consumption of subsidized diesel fuel until July 31st, 2014 reached 9.12 million kiloliters or 60 percent of quota. While the consumption of subsidized premium fuel reached 17.08 million kiloliters or 58 percent of quota.