Pertamina barred from reducing subsidized fuel supply

image source : og-indonesia.com

 

The government has prohibited state-owned energy company Pertamina from reducing the supply of subsidized transportation fuel, particularly gasoline of the Premium brand.

The Energy and Mineral Resources Ministry’s oil and gas director general, Djoko Siswanto, said in Jakarta on Monday that the supply of transportation fuel was regulated under an Energy and Mineral Resources Ministry regulation.

Djoko said the regulation was in line with a policy of the Environment and Forestry Ministry to reduce air pollution prior to the implementation of Asian games.

“[To alleviate air pollution], Pertamax is changed to Pertamax Plus, while Pertamax Plus is changed into Pertamax Turbo. So, Pertamina has to fill the tanks of Premium,” Djoko said as reported by kontan.co.id.

Previously, Pertamina has been instructed to support the clean air policy prior to the Asian Games through Environment and Forestry Ministry Letter to the President No. S.108/Menlhk/Setjen/PKL.3/3/2018 on Euro 4 fuels and quality air prior to the Asian Games.

Under the policy, Pertamina is required to guarantee the supply of Euro 4 fuels starting in May in Greater Jakarta, Palembang, Bali, Bandung, Yogyakarta, Surabaya, Banyuwangi and Labuan Bajo.

In response to the letter, Pertamina said the company was considering to reduce the supply of Premium fuel in Java, Madura and Bali, so that the company could produce more Pertamax Turbo.

“[The reduction of Premium supply] is for the sake of the environment. It is a decision based on the [government’s] road map,” said Pertamina marketing director M. Iskandar.

Djoko, however, stressed that the government would not sacrifice Premium supplies. 

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