Subsidized fuel consumption reaches half of quota: BPH Migas

Subsidized fuel consumption volume in the first half of 2014 reached 22.9 million kiloliters, or accounting for 49.8 percent of the full-year quota set by the government, downstream oil and gas regulator BPH Migas said.

"We will make every effort to supervise it (the use of subsidized fuel), so consumption will not exceed the target of 46 million kiloliters," BPH Migas chief Andy N Sommeng told the press on Monday.

Both the government and the House of Representatives (DPR) have agreed to set the quota of subsidized fuel at 46 million kiloliters in the revised 2014 state budget.

The first-semester subsidized fuel consumption comprised of 14.44 million kiloliters of gasoline, 0.46 million kiloliters of kerosene, and 8 million kiloliters of diesel oil.

One of the planned efforts to control the subsidized fuel consumption is by reducing the number of subsidized fuel nozzles at gasoline stations in the country?s major cities. The move will be initiated in Jakarta.

Another effort will be to restrict the use of subsidized fuel for trucks, tourist buses, and luxury taxis.

State oil and gas company Pertamina warned earlier the subsidized fuel consumption will exceed the quota unless the government takes necessary steps to control it. Pertamina has predicted subsidized fuel consumption will reach 47.621 million kiloliters at the end of this year. (*)