BPH Migas to study possibility of setting RON88 fuel at market price
Monday, June 11 2007 - 03:20 AM WIB
The downstream oil and gas regulatory body, BPH Migas will study the possibility for retailers to sell gasoline with a research octane number (RON) of 88 at market price in an effort to reduce the government's subsidy for fuel, Investor Daily reported on Monday.
BPH Migas' head Tubagus Haryono was quoted by the paper as saying in Bogor, West Java, last week that the RON 88 gasoline was still subsidized by the government but other developing countries, such as India and Vietnam, have sold the fuel at market price.
He however said the plan to remove subsidies for the type of fuel would not realized until 2009 as the government had pledged not to increase until then.
Currently, the RON 88 gasoline is only sold by state-owned oil and gas company PT Pertamina. By removing subsidies for the type of fuel, the government also epects more companies would enter the business of selling the fuel, Tubagus said. He regretted that the fact that many luxury car owners use the subsidized RON 88 fuel, rather than non-subdized gasoline with 92 and 95 RON. (*).