Govt raises subsidized fuel quota as demand surges

The government has agreed to increase the volume of subsidized fuels to 38.37 million kiloliters this year from 36.5 million kiloliters as stated in the revised 2010 state budget.

The agreement was made during a coordinating meeting between the finance ministry, BPH Migas, the director general of oil and at the ministry energy and mineral resources and PT Pertamina on Friday night.

The chairman of oil and gas downstream regulator BPH Migas T?bagus Haryono, said that the subsidized fuel quota needed to be increased because there was a surge in the demand in November and December.

Under the new quota, the volume of subsidized Premium and diesel oil will increase by 1.67 million kiloliters and 1.60 million kiloliters, respectively to, to 23.13 million kiloliters and 12.85 million kiloliters. The quota for subsidized kerosene will be reduced by 1.41 million kiloliters to 2.38 million kiloliters.

Director of oil and gas Evita Herawati Legowo said that the increase in the subsidized fuel quota needed an approval from the House of Representatives. ?It needs to be discussed with the House members,? she added. ( godang)