Wednesday, December 22, 2010

Govt ready to regulate fuel oil consumption

Jakarta (ANTARA News) - The government said it was ready to carry out its policy on subsidized fuel oil consumption limitation at the end of March 2011, a cabinet minister said.

"It is possible that at the beginning, the program would not run 100 percent smooth but we have to carry it out," Minister of Energy and Mineral Resources Darwin Saleh said here on Tuesday.

He said that the government was determined to treat the people fairly where it would only provide subsidy for those who deserved it.

After all, the allocation of a subsidy put a burden on the state budget so that it should be managed in a better way.

Darwin said that the government had established five working groups which would be charged with the task of implementing the subsidized fuel consumption regulation.
The five working groups consisted of representatives from state-owned oil and gas firm PT Pertamina ( in charge of operations), Oil and Gas Regulating Body, or BP Migas (supervision), Oil and Gas Directorate General (popularization), Legal Affairs and Public Relations Bureau of the Ministry of Energy and Mineral Resources (regulation) and National Development Planning Board or Bapennas (social and economic impacts).

The five working groups reflect that the arrangement of the subsidized fuel consumption involves many sectors such as transportation, small businesses, fishermen, trade, good and services and agriculture, the minister said.

The government and the House of Representatives (DPR) on December 14, agreed that subsidized fuel consumption (premium gasoline in particular) must be limited as of March 2011.

The agreement would be carried out after the government presented to the DPR a comprehensive study about the matter and would be agreed by the DPR`s Commission VII on energy affairs.(*)

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