Incentives planned for petrol stations

The government may introduce a set of incentives for the development of petrol stations selling non subsidized fuels, as a part of its attempts to help control the consumption of subsidized fuels.

?Incentive is indeed under discussion. We have sat down and discussed this with private businesspeople as well as with Ministry of Finance. Among others, the incentive may be in the form of leniency in investment and credit,? Ibrahim Hasyim, a committee member at the downstream regulator BPH Migas, said as reported by Investor Daily on Friday.

He added that the discussion was still ongoing.

State oil and gas firm PT Pertamina, which boasts by far the biggest network of petrol stations numbering over 5,000 across the country, normally teams up with businesspeople, be it individual and institutional, in operating the stations.

At present, close to half of Pertamina?s petrol stations do not sell non subsidized fuels.

The incentive plan is the latest attempt on the government?s part to limit the use of subsidized fuels, namely Premium gasoline and diesel oil. At early stages, the use of the two fuels will not be permitted for vehicles that belong to the state administration, both central and regional, and to state-owned enterprises (also in central and local) starting May 2012.

Starting August, in the Greater Jakarta, the ban will be expanded to private vehicles with 1,500 cc engine displacement or higher.(*)