Govt considers opening special fuel stations for public vehicles

The government is considering opening special fuel stations for taxis, public buses and other vehicles used for public transportation in a bid to limit the use of heavily subsidized fuel products, Bisnis Indonesia reported on Friday.

Director for the processing and marketing of oil and gas at the Ministry of Energy and Mineral Resources, Erie Soedarmo said in Jakarta on Thursday that the opening of special fuel stations for public transportation was being discussed by the ministry, state owned oil and gas company Pertamina and House of Representatives (DPR).

"The opening of special fuel stations for public transportations would be quite effective to control the use of the highly subsidized Premium fuel and diesel oil," he was quoted as saying.

Under such a plan, fuel distributors will be required to divide their fuel stations into two sections; one for private cars and another for public transportation, he said, adding that with such separation, any increase in the fuel price will not bring serious impact on public transportation.

The government last week increased the price of diesel oil sold to certain industries including mining firms, oil and gas companies and export-oriented companies in a bid to halt the sharp increase in the fuel subsidy.

The government is also considering raising the price of fuel prices sold to private vehicles to ensure that the program to reduce the fuel subsidy could be carried out more effectively. (*)