Consumption of subsidized fuel exceeds quota
Thursday, May 5 2011 - 01:21 AM WIB
Consumption of subsidized premium gasoline has exceeded the quota set by the government as motorists switched from non-subsidy product in the wake of rising price of oil in the international market.
According to data from downstream oil, gas regulator BPH Migas, the consumption of premium gasoline in January-April 2011 period reached 7.88 million kiloliters (kl), or 6.98 percent higher than the 7.37 million kl quota.
If this trend continues, the cost of fuel subsidy would inflate, which would widen the country?s state budget deficit in 2011. A number of experts have advised the government to increase the price of subsidized fuel products to help deal with the impact of rising oil price. (*)