Quota for subsidized fuels to increase five percent in 2007

The quota for subsidized fuels to be included in the 2007 state budget will be increased by five percent to about 43.63 million kiloliters from about 41.57 kiloliters this year, Tubagus Haryono, the chairman of the oil downstream industry regulatory body BPH Migas has said.

Speaking during a hearing between the ministry of energy and mineral resources with the Comission VII of the House of Representatives in Jakarta Thursday, Tubagus said that of the total, the volume of the subsidized Premium fuel would also be increased by five percent to 17.93 million kilo liters from 17.08 million kilo liters at present, while the quota for subsidized diesel oil would be increased by 8.3 percent to 15.59 million kilo liters.

"The quota for subsidized kerosene would remain about 10 million kilo liters despite the government's program to convert the use of kerosene to liquefied petroleum gas (LPG)," he said.

With regard to the quota for subsidized diesel oil, Tubagus said that the increase would be higher than those of premium and diesel oils so as to support the government's regulation No. 9/2003 which allows fishing boats with a capacity of above 30 gross tons to buy subsidized diesel oils.

He said that the assumption of the oil production to be stated in the 2007 state budget would be about 1.05 million barrels per day, while the assumption of fuel price in the state budget would be fixed at between US$55 and $58 per barrel. (Godang)