Govt proposes an increase in subsidized fuels in 2011

The government has proposed an increase in subsidized fuel allocation in the 2011 state budget to between 36.77 million kiloliters (kl) and 42.56 million kl from about 36.5 kl in the 2010 state budget.

Speaking during a hearing with the House of Representatives? Commission VII overseeing among others energy and environmental affairs on Tuesday, Energy and Mineral Resources Minister Zahedy Saleh said the requested volume of subsidized fuel for 2011 was calculated in line with the growth trend in the distribution of subsidized fuels up to May, this year.

He also said that the government did not have any plan to limit the distribution of subsidized fuels to motorcycles as widely reported by the media. ?Motorcycles are mostly owned by poor people. So, they still deserve to get the subsidized fuel,? he added.

He said that the government would also ask for the allocation of subsidized liquefied petroleum gas (LPG) of 3.52 million tons in the 2011 state budget from 2.97 million tons in 2010?s state budget to supply the 3-kg LPG canisters given to households.

?The volume of the subsidized LPG is equal to 7.83 million kl of kerosene,? he added.

"The volume of subsidized biofuels for 2011 is estimated at 982,000 kl," he said.

Darwin also said that government proposed Indonesia Crude Price (ICP) of between US$75 and $90 per barrel. ?This proposal is made in view of the global supply and demand and types of Indonesian crudes," he said. (godang)