Request for Limitations on Premium Gasoline Consumption to be Accelerated
Monday, 21 April, 2008 | 17:07 WIB

TEMPO Interactive, Jakarta: The House of Representatives (DPR) has asked the government to accelerate the schedule regarding the limitations of Premium gasoline consumption.

This measure is considered important in order to anticipate the impact of the change between Premium users and Pertamax users.

Suharso Monoarfa, Deputy Chairman of the DPR Budgetary Committee, said that the government should control fuel usage firmly because subsided fuel tends to be increased more than 40 million kilo liter while its budget is only 35.5 million kilo liter.

“It should be limited soon because we cannot give more subsidy,” he told Tempo.

Harry Azhar Azis, another Deputy Chairman of the DPR Budgetary Committee, said the program to limit premium consumption was important to protect state budget that is Rp21 trillion in deficit.

“We ask government to secure the budget,” he said yesterday (20/4).

He suggested that Premium have three price levels: RON 88 (regular premium) at Rp4,500 per liter; RON 90 at Rp5,500; and RON 92 at Rp6,500.

“By limiting Premium consumption, the government can make budget savings of Rp20 trillion,” said Harry.

The government plans to start applying this limitation program next month.

In the first phase, it will be applied in Jakarta, Bogor, Depok, Tangerang, and Bekasi, but by the end of 2008, it will cover all of Java and Bali.

Adi Subagyo, a committee member for the Oil & Gas Upstream Executing Body, said the change from Premium to Pertamax needed special attention.

Ahmad Erani Yustika, Executive Director of the Indonesian Institute for the Development of Economics and Finance, suggested that the Premium price be increased in order to reduce the disparity between Pertamax and Premium.

Petroleum expert Kurtubi suggested government to give highest price for Pertamax to protect the price of basic commodities following world oil price increases.

“This would reduce the price disparity between Pertamax and Premium,” he said.

AGUS SUPRIYANTO | EKO NOPIANSYAH | AMIRULLAH | SETRI