REPUBLIKA.CO.ID, JAKARTA -- The Energy and Mineral Resources (ESDM) Ministry pointed to a decline in the consumption of low-quality fuel by the public. The decline is the result of a shift in the public's consumption from low-quality premium gasoline to the relatively better quality pertalite gasoline, according to data collected by Antara on Thursday from the ESDM Ministry.
Data available at the Downstream Oil and Gas Regulator (BPH Migas) indicated that the consumption of premium gasoline had dropped by almost 50 percent in Java, Madura, and Bali (Jamali). In the first quarter of 2018, the amount of premium consumed by the public in the Jamali areas stood at 1,037 million kiloliters (kl).
In the same period last year, the consumption of premium had reached over two million kl in the areas.
The same conditions were also witnessed in the region outside Jamali. In the first quarter of 2018, consumers only needed some 1.9 million kl, or down by 29 percent as compared to 2.6 million kl in the previous period.
BPH Migas Head Fansurullah Asa had forecast that until April 2018, the consumption of premium in the non-Jamali region will decline further. "We forecast a decline by 15 percent," Asa noted.
Witnessing the trend, the company has attempted to modify some of the premium facilities (sarfas) into pertalite facilities.
He said this had been done, as subsidized premium is only designed for consumers in dire need. "State-owned oil company Pertamina has a commitment to provide premium gasoline to rightful consumers (the needy consumers). We laud the efforts of Pertamina to carry out what is expected by the government," Asa remarked.
Moreover, the modification of sarfas has a financial impact on the company. It is considered that premium has a better margin.
Despite a trend of a change in the consumers' behavior, the government continues to guarantee the availability of premium. Moreover, it will enhance the distribution of the assigned fuel type to the Jamali region.
The government will soon work out new regulations as a legal umbrella for the implementation of the new plan. "We are revising Presidential Regulation (Perpres) No. 191 of 2014. The ESDM minister, finance minister, and state-owned enterprises minister will sign an agreement on that matter," Asa remarked.
If the regulation is completed, BPH Migas will immediately coordinate with Pertamina to discuss the amount of subsidized premium quota. Asa noted that existing data of 2017 will be used as a benchmark by observing economic growth indicators, the number of vehicles, and the potential migration of consumption from Pertalite to Premium.
Asa believes that the new regulation will be issued as a form of the government's support to meet the public's need for premium fuel. "This is a matter of justice for the small community," he remarked.
According to the plan, the government will increase the volume of premium quota by five million kl from the previous set at 7.5 million kl, so the total is 12.5 million kl. The amount will cover the requirement for premium in the Jamali area.
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