Jakarta (ANTARA) - The Indonesian government is planning to increase the quota for subsidized Pertalite (RON 90) fuel in response to rising demand, Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said.
"There will certainly be an increase in quota. We are still studying it," he told reporters at the Energy and Mineral Resources Ministry in Jakarta on Friday.
He explained that the proposed increase comes amid a growing shift among consumers from non-subsidized fuel products, such as Pertamax (RON 92), to Pertalite.
According to Bahlil, the trend is linked to higher fuel prices triggered by the conflict involving the United States and Iran, which has severely affected shipping traffic through the Strait of Hormuz, one of the world's most important energy transit points.
"We will conduct a review of the Pertalite quota at the end of this month," the minister said, noting that the government had assessed the budgetary implications of a potential increase.
The Downstream Oil and Gas Regulatory Agency (BPH Migas) reported increases in Pertalite consumption in recent months after the government raised the price of Pertamax from Rp12,300 to Rp16,250 (US$0.89) per liter on June 10.
BPH Migas Head Wahyudi Anas said that the price hike was followed by a 9.19 percent increase in average daily Pertalite consumption in June, to 82,760 kiloliters, representing an additional 6,965 kiloliters.
Consumption rose further the following month, increasing 12.92 percent to an average of 85,589 kiloliters per day. However, the figure declined to 84,368 kiloliters per day in August.
In comparison, average daily Pertalite consumption stood at 75,795 kiloliters before the Pertamax price increase.
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Translator: Putu Indah, Tegar Nurfitra
Editor: Azis Kurmala
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