Consumption of Premium and Diesel Exceeds Quota
Thursday, 24 April, 2008 | 17:25 WIB

TEMPO Interactive, Jakarta: The Downstream Oil and Gas Agency (BPH Migas) has claimed that subsidized fuel consumption, especially that of premium petrol and diesel, has exceeded the quota set by the House of Representatives (DPR).

“The quota was exceeded by approximately 12 percent between January and March 2008,” said a member of BPH Migas Committee Adi Subagyo in Jakarta, on Wednesday (4/23).

This is why the government must accelerate the premium and diesel consumption restriction program so that the subsidy won't increase.

It is urgent to restrict fuel consumption because the high price disparity between the subsidized and non-subsidized fuel helps increase manipulations such as diluting and smuggling.

“Currently, the manipulation rate of subsidized fuel has reached between 15 and 20 percent,” he said.

The 2008 Revised State Budget set the quota for premium at 16.9 million kiloliters and diesel 11 million kiloliters.

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