Pertamina asked to pay part of fuel subsidy

The government has asked state-owned oil and gas company Pertamina to pay part of the fuel subsidy as the use of the fuel has exceeded the initial target agreed with House of Representatives.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta over the weekend that the amount of this year?s fuel subsidy agreed with the House was Rp 1.9 trillion.

But due to the increase in the fuel use, particularly the diesel oil, the allocated funds were in shortage of about Rp 1 trillion. ?The shortage should be covered by Pertamina,? he said.

According to the minister, the surge of the diesel oil sales were partly due to smuggling activities. The oil which, is sold at a half of the international price, is often smuggled to neighboring countries through provinces. (*)