BPH Migas sees subsidized fuel consumption down 4.3% next year

Demands for fuel subsidized by the government may decline by 4.3 percent next year to 39.81 million kiloliters from an estimated 41.58 million kiloliters this year as a result of the government's program to promote the use of of liquefied petroleum gas instead of kerosene.

Chairman of downstream regulator BPH Migas Tubagus Haryono told the parliament on Monday that as more households would use LPG, kerosene consumption is expected to decline to 9.51 million kiloliters in 2007, from an annual average of 10 million kiloliters.

Tubagus also said cars and motorcycles would consume 17.46 million kiloliters of Premium gasoline next year, lower than the target of 21.9 million kiloliters this year. While diesel consumption is expected at 12.84 million kiloliters or down 11 percent from the target of 14.5 million kiloliters in 2006.

Cars with engines bigger than 2,000 cc will have to buy high-octane gasoline and low-sulfur diesel, which are not subsidized, Tubagus added. (godang)