REPUBLIKA.CO.ID, JAKARTA -- House of Representatives warned government that the consumption of subsidized fuel must not surpass the limit. The state budget only allows for 46 million kilo liter (kl) of subsidized fuel worth 246.4 trillion IDR this year.
"We refer to state budget. Surpassing the target means that we are violating the law," Vice Head of Commission VII at the House of Representatives Satya Wira Yudha said on Monday, November 10.
He said that the parliament would ensure that government obeying the law by urging them to prepare a plan if the consumption went over the quota. The House also demanded government's promise to convert oil fuel (BBM) to gas fuel (BBG). The plan has been suspended for three years.
State energy company, Pertamina, predicts the consumption of subsidized fuel will be higher than expected by the end of 2014. Pertamina spokesman Ali Mundakir said that the company had the stock of subsidized fuel, but it would run off by December 20 for gasoline. The remaining quota per November 1 is around 6.3 million kl.
Subsidized fuel distribution reached 39.07 million kl by October 31. Of the total amount of subsidized fuel distributed from January to October, 24.92 million kl was gasoline, and 13.38 million kl was diesel.
Pertamina expects government to hike the price of subsidized fuel to limit the consumption. "Once the price is raised, the consumption will decrease," he said.