Ezra Sihite, Jakarta – The sale of subsidized fuel in Central Jakarta and on the capital's toll roads will be restricted starting this month in order to control rapid consumption which threatens to overrun the state's annual subsidy before the end of the year.

Authorities from the country's national oil-and-gas regulator have decided to halt the sale of solar diesel in Central Jakarta and premium fuel at petrol stations along toll roads.

The decision is seen as a necessary step to keep consumption below the budgeted 46 million kiloliters for this year – something that is looking increasingly unlikely at current rates of consumption.

"Fuel sales control is a response to the decrease in the subsidized fuel quota, from 48 million kiloliters to 46 million kiloliters, as stipulated in the 2014 state budget," Ibrahim Hasan, commissioner of Indonesian Downstream Oil and Gas Regulatory Agency (BPH Migas) was quoted as saying by the website of the Cabinet Secretary on Friday.

BPH Migas asked the Fuel Supply and Distribution Agency to start implementing the restrictions on Aug. 1.

As part of the fuel-saving measures, solar diesel fuel would not be distributed to regions which were known to be prone to smuggling between certain hours of the day, authorities said.

BPH Migas would also coordinate with local governments in a bid to reduce the sale of solar diesel to fishermen by 20 percent. "If there are business entities which sell solar diesel fuel and premium higher than the quota, the government will not pay the subsidy," Ibrahim said.

Source: http://www.thejakartaglobe.com/news/jakarta/government-restrict-subsidized-fuel-sales/