Pertamina likely to import more Premium gasoline and diesel oil

State-owned oil and gas company PT. Pertamina will likely increase imports of Premium gasoline and diesel fuel this year to meet the growing demand for subsidized fuels on the domestic market.

Pertamina?s marketing director Djaelani Sutomo said on Monday that based on the projection by the oil and gas downstream regulator BPH Migas, the national consumption of subsidized fuels would shoot up to 40.1 million kiloliters this year, which is 9.86 percent higher than the 36.5 million kiloliter stated in the 2010 state budget. As the capacity of domestic refineries has not yet increased, the rise of consumption will push up imports of premium gasoline and diesel fuel.

?The amount of imports will be similar with the increase of local consumption. Perhaps about 10 percent,? he noted.

The government provides subsidies for the sales of Premium gasoline, diesel oil and kerosene to make them affordable to the public.

Under the 2010 state budget, the government set the quota of subsidies at 36.5 million kiloliters of fuel this year, including 21.45 million kiloliters of Premium gasoline, 11.25 million kiloliters of diesel oil, and 3.8 million kiloliters of kerosene. BPH Migas?s Chairman Tubagus Haryono however said recently the consumption of subsidized fuels could jump to 40.1 million kiloliters if there was no effort of curbing such consumption by among others encouraging the public to use LPG rather than kerosene and applying a limited distribution system of gasoline and diesel oil.

According to him, the increase in fuel consumption will be caused by the rising economic growth and the increase in car and motorcycles numbers. (Godang)