Pertamina tightens supply of subsidized fuel products

State-owned oil and gas firm PT Pertamina said it has tightened the supply of subsidized fuel products including automotive diesel and premium gasoline since early this month.

Pertamina Vice President for Corporate Communications Ali Mundakir said in a statement obtained Monday that the move was in line with instruction from the downstream oil and gas regulator BPH Migas to limit the consumption volume of subsidized fuel to 46 million kilo liters as set under the revised 2014 state budget.

Ali said that since August 1, Pertamina has stopped the supply of subsidized automotive diesel in Central Jakarta. And since August 4, the company has limit the selling hours of subsidized automotive diesel to between six AM and six PM in Java, Sumatra, Kalimantan and Bali particularly in areas prone to smuggling.

Starting August 6, Pertamina will tighten the supply of subsidized premium gasoline by prohibiting gas stations located in toll roads from selling the fuel product.

The move to limit the subsidized fuel products volume comes amid rising concerns over the prospect of inflating fuel subsidy budget amid excessive consumption.

Editing by Reiner Simanjuntak