Pertamina Lowers Daily Quota for Subsidized Fuel

By Rangga Prakoso on 03:38 pm Aug 25, 2014
Category News
Pertamina filling stations are urging customers to start using the non-subsidized Pertamax type of gasoline. (Antara Photo/Rivan Awal Lingga)

Pertamina filling stations are urging customers to start using the non-subsidized Pertamax type of gasoline. (Antara Photo/Rivan Awal Lingga)

Jakarta. To ensure that supplies won’t dry up before the end of the year, state-owned oil and gas company Pertamina has reduced the daily amount of subsidized fuel it distributes throughout the country — a move that has led to long lines at many of its filling stations.

The adjustment is based on a revision in the State Budget that lowers the nationwide subsidized fuel quota from 48 million kiloliters to 46 million kiloliters.

The revised budget had left Pertamina with two options: use regular distribution quota, which would leave the country with no subsidized diesel (Solar) by November and no subsidized gasoline (Premium) by mid-December, or lower the daily quota to secure supplies until the end of year.

The adjustment, according to Pertamina’s vice president for corporate communication, Ali Mundakir, has been implemented since Aug. 18.

“People are standing in line and that will continue to be case with the subsidized fuel running out in gas stations in the afternoon,” Ali said on Sunday. “That is not a form of fuel scarcity, but a consequence of the quota adjustment. We hope that private vehicle users understand and start using non-subsidized fuel.”

The Energy and Mineral Resources Ministry said that it would not interfere with Pertamina’s policy.

“We suggest people start saving [fuel]. The quota for subsidized fuel is limited, that’s why this adjustment was made,” Deputy Minister Susilo Siswoutomo said on Monday. “Those who are waiting in line are private car users — they should be able to buy non-subsidized fuel.”

  • Max Headroom

    All fine and good – but now tell me why people who want to fill their car with non-subsidized fuel in the first place have to wait the same f*cking long line to get served than those who insist of being eligible for subsidized fuel (and in the very same time let their cars and AC run which of course uses additional subsidized fuel while waiting for half an hour in line).

    Actually writing out of experience as I was waiting yesterday for 30 minutes to fill my wife’s car with Pertamax.

    On the other side for my car (diesel) I have no problem to fill it up with subsidized solar but I am being refused to get a 5-liter jerry can filled with diesel for my (expensively purchased !) generator because PLN (another state-owned company) is not able to ensure a steady 24/7 supply of electricity. Alternatively I could buy a 10-liter plastic container of “special” diesel which costs (completely overpriced) Rp 220,000.

    Basically every year the same – after mudik with millions of liters of subsidized fuel burned for some tradition which of course spikes the monthly consumption there is the big stress to ensure that subsidized fuel is being provided until end of year.

    Just stop this subsidized fuel business once and for all and offer instead two types of fuel for each – a low-octane version (now “Premium”) for a cheaper price (but NOT subsidized) and same for diesel – for those who think that their cars need a Rp 22,000 per liter diesel – let them have it – and for those who just want to drive a “regular” diesel car – sell (bio)-diesel for a standard international market price…I really do hope that there will be soon the chance that other companies can get into the market (not only Pertamina which, apart of Jakarta region holds a monopoly on the fuel market) – give me self-service stations and not those ‘hanky-panky” 20-something attendants per station service (also surely will reduce the price) …