Government promises to solve PLN's fuel problem

Wednesday, June 8 2005 - 02:51 AM WIB

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the government would soon settle the problem related to the supply of diesel oil to state owned electricity company PLN.

"The fuel supply problem would be discussed during a Cabinet meeting on Wednesday (today)," he told reporters following a meeting with Vice President Jusuf Kalla on Tuesday.

Pertamina has refused to provide additional diesel supply to PLN because the subsidized diesel oil allocated for the state owned electricity company had surpassed the existing quota. PLN has been asked to buy the additional diesel oil at market price, but it refused to do so. The diesel oil supply allocated for PLN this year reaches about 11 million kiloliters, or far above the quota of 8.5 million kiloliters set for the power company.

Purnomo made it clear that that the government would not allow PLN to stop the operation of its power plants only because it could not receive enough fuel supply. (godang)

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