Govt plans oil fuel buffer stock

The government plans to develop oil fuel buffer stock, sufficient for 30-day supply, with projected investment of US$17.25 billion.

Director General of Oil and Gas IGN Wiratmadja said in a statement on Wednesday that the planned oil fuel buffer stock is part of measures to anticipate emergency situation such tsunami disaster.

With daily fuel consumption of 1.5 million barrels in the country, about 45 million barrels are required for the buffer stock.

Wiratmadja said that the buffer stock would be developed by state and private firms.

He said the government has completed the feasibility, in the hope that the project can be completed in five years.

Indonesia currently does not have fuel buffer stock. State-owned oil and gas firm Pertamina has operational stock of 22 days for oil fuel and 12 days for LPG.

Editing by Reiner Simanjuntak