Subsidized fuel consumption may climb to 43.88m kl in 2012

State oil and gas firm PT Pertamina has estimated that the consumption of subsidized fuels ?Premium gasoline, diesel and kerosene ? may further increase to 43.88 million kiloliters (kl) next year if the government does nothing to limit their distribution, The Jakarta Post reported Monday.

Pertamina?s consumption forecasts for next year puts Premium at 26.91 million kl, diesel at 15.27 million kl and kerosene at 1.7 million kl.

?We assume that Premium will increase by 8 percent and diesel by 6 percent per year,? the firm said in a document presented to the House of Representatives? Commission VII overseeing energy

Pertamina?s forecast is 9.7 percent higher than the government?s estimates of 24.41 million kl of premium, 13.88 million kl of diesel and 1.7 million kl of kerosene.

The company?s director for marketing and business, Djaelani Sutomo, reported earlier that Pertamina projected this year?s subsidized fuels consumption may reach 40.94 million kl or 1.11 percent above the government?s 40.49 million kl quota.

According to downstream oil and gas regulator BPH Migas?s data, from Jan. to Aug. 31, the consumption of subsidized fuels had reached 27.25 million kl, or 67.5 percent of this year?s quota.

?Rising fuel prices have caused many consumers of nonsubsidized fuels to turn to subsidized fuels due to the widening price disparity,? said Pertamina spokesman M. Harun said. To keep consumptions under control, Pertamina and other related institutions were working together to eradicate various violations against regulations on the distribution of subsidized fuels, he added.

As of Aug. 31, BPH Migas recorded 166 cases of violations across the country. As many as 130 cases are still being investigated by the police, while 27 cases are being prepared for trial and nine cases have already reached court.

In 2011, Pertamina punished 42 out of around 4,500 fuel stations nationwide, who were found to break the regulations. (*)