BPHMigas increases Premium fuel distribution

Downstream regulator BPHMigas has increased the distribution of subsidized gasoline Premium by 2.5 million kiloliters in line with the new quota stated in the revised 2012 state budget.

The agency said, as quoted by Investor Daily, that the distribution of the additional Premium fuel will start beginning this month or early June. With the additional supply, the total quota of subsidized fuel this year amounts to 40 million kiloliters.

About 39.85 million kiloliters of the total are distributed by Pertamina, 103.263 kiloliters by PT AKR Corporindo Tbk, 20,440 kiloliters by PT Petronas Niaga Indonesia and 34,128 kiloliters by PT Surya Parna Niaga.

BPH Migas has also agreed to increase subsidized fuel quota for Kalimantan by 5 percent to 3.19 million kiloliters from 3.03 million kiloliters in the previous year to cope with the shortage of the subsidized fuel supply in Kalimantan areas.

Provincial administrations of East, West, Central and South Kalimantan have demanded the central government to increase subsidized fuel quota for their respective provinces following protests from the motorists who had to take a long line to buy fuel due to lack of supply.

The local administrations complained that the central government was not fair with the subsidized fuel distribution because, unlike other provinces, the subsidized fuel quota for them was cut down by 7 percent. Although there is an increase of five percent, the quota for Kalimantan is still 2 percent lower than those distributed last year. (*)