Govt to cut subsidized fuel quota in 2010 state budget

The government plans to lower the quota of subsidized fuels to 36.50 million kiloliters in the 2010 state budget from 38.94 million kiloliters at the current budget, a senior energy official has said.

Evita H. Legowo, the Director General of Oil and Gas at the Energy and Mineral Resources Ministry, said during a hearing with the House?s Commission VII on Monday that the subsidized fuels to be allocated for the 2010 budget would consist of 21.45 million kiloliters of Premium gasoline, 3.80 million kilolitres of kerosene, 11.25 million kiloliters of diesel fuel, 214,541 kiloliters of bioethanol and 562,534 kiloliters of biodiesel.

In the current (revised) state budget, the subsidized fuel quota is set at 38.94 million kiloliters. The amount consists of 20.63 million kiloliters of Premium gasoline, 5.80 million kiloliters of kerosene and 12.50 million kiloliters of diesel fuel.

The government also proposed to fix the average Indonesia Crude Price (ICP) in the 2010 state budget at a range between US$50 and $70 per barrel, higher than this year?s assumption of between $40 and $60 per barrel, she said.

The average ICP between January to May 15 reached $47.66 per barrel. (godang)