BPH Migas to propose additional subsidized fuel quota

Downstream oil and gas authority BPH Migas said it would propose additional quota of subsidized fuels because demand for the fuels had increased.

The agency will ask the subsidized fuel quota be increased to 40 million kiloliters, 5 million kiloliters higher than the amount set in the revised state budget, BPH Migas' spokesman Adi Subagyo.

He said following the rise in fuel prices, many motorists prefer using Premium gasoline, which is subsidized by the government, than Pertamax and Pertamax Plus high quality gasoline, which is not subsidized by the government. Furthermore, the amount of fuel illegally sold to manufacturing companies and mining companies have also on the rise. The government does not provide subsidies for fuel sold to industries.

Data at BPH Migas shows that the subsidized fuels consumption for January ? June period reaches 19.6 million kiloliters. Meanwhile, quota volume of subsidized fuels set at the revised state budget 2008 is 16.8 million kiloliters for Premium gasoline, 11 million kiloliters for diesel oil and 7.7 million kiloliters for kerosene. (Bernard)