Govt, House agree to increase 2011 subsidized fuels quota

The House of Representatives and the government have agreed to increase the quota of subsidized petroleum-based fuels in the 2011 draft state budget to 38.59 million kiloliters (kl) from the original plan of 36.77 million kl.

Energy and Mineral Resources Minister Zahedy Saleh said that the increase was based on projected sharp increase in the country?s fuel consumption next year.

?This year, the consumption of subsidized fuels almost exceeds the quota of 36.5 million kl,? he told reporters following the deliberation of the 2011 state budget at the House.

The minister said that under the draft state budget, the government will provide subsidies for the sale of a total of 23.19 million kl of Premium and Bio-premium gasoline, 2.31 million kl of kerosene, and 13.08 million kl of diesel and bio diesel oil.

According to the minister, the government will tighten the control of the distribution of subsidized fuels by involving the local governments and the policy to ensure that the subsidized fuels are not abused.

The government will also revise the regulation on the retail prices of subsidized fuels. ?The revision is needed to regulate the use of subsidized fuels by certain users,? he added.

Meanwhile the head of downstream oil and gas regulator BPH Migas, Tubagus Haryono, said that the increase in the fuel subsidy quota was also made due to an increase in the number of population, vehicles as well as the increase in the GDP. (godang)