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Pertamina lifts daily subsidized fuel quota

Source
Jakarta Globe - August 27, 2014

Rangga Prakoso & Ezra Sihite, Jakarta – State energy company Pertamina lifted daily quotas on purchases of diesel and gasoline late on Tuesday, eight days after being implemented, in a move to eliminate long lines of customers buying fuel at stations.

"Considering the situation, Pertamina, starting tonight, decided to normalize the distribution of subsidized fuel so that there will be no quota restriction on Premium and Solar anymore," Pertamina corporate communications vice president Ali Mundakir said in a press release on Tuesday night. He was referring to Pertamina's brands of low-octane gasoline and diesel.

The order to cancel the fuel restriction came as a result of a meeting led by Vice President Boediono. Chief Economics Minister Chairul Tanjung assured that there will be no long queues anymore for buying subsidized fuel at gas stations.

"In less than three days, there shall be no unnecessary lines," he said on Wednesday in a statement. "The queues were caused by the distribution. For that, the distribution flow will resume to normal since we have sufficient fuel inventories."

Ali said that Pertamina will maintain the control of the distribution based on each area's situation. "The government will decide a policy that will not hurt Pertamina," he said.

Pertamina had set the daily restrictions on concern that 2014 quotas in the distribution of subsidized fuel would be met before the end of the year. The government had reduced the nationwide quota to 46 million kiloliters from 48 million kiloliters.

Source: http://www.thejakartaglobe.com/news/pertamina-lifts-daily-subsidized-fuel-quota/

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