Minister affirms to propose additional quota for subsidized fuel

Jakarta (ANTARA) - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif affirmed that his ministry had proposed an additional quota for subsidized fuel.

At a working meeting with Commission VII of the House of Representatives (DPR), he noted that the government was calculating whether it can implement targeted programs in the second half of this year, so that the quota does not exceed the government's budget ceiling.

Commission VII has called on the government to immediately increase the quota of subsidized fuel since the available quota is currently running low.

"If we look at today's dynamics of development of the variables, we are worried that this quota could collapse in 2022," member of the commission stated at their working meeting here on Wednesday.

Based on a report by state-run oil and gas corporation PT Pertamina (Persero), as of July 2022, the provision of Pertalite-type subsidized fuel has reached 16.8 million kiloliters, or equivalent to 73.04 percent of the total quota set at 23 million kiloliters.

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Meanwhile, the provision of solar-type subsidized fuel has reached 9.9 million kiloliters from a total quota of 14.9 million kiloliters.

In 2022, the government set a subsidy of Rp502.4 trillion for fuel, liquefied petroleum gas (LPG), and electricity.

Currently, only six million kiloliters of Pertalite are left out of 23 million kiloliters for 2022, and the quota is forecast to run out in October 2022. Hence, an increase in the quota of subsidized fuel, both Pertalite and Solar, is deemed necessary.

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According to the House member, the DPR and the government had earlier agreed to increase the quota for Pertalite by five million kiloliters, thereby bringing the total to 28 million kiloliters. The total quota for Solar is agreed to be increased to 17 million kiloliters, he added.

"However, today, it (the total quota) is still at 14.9 million kiloliters for Solar and 23 million kiloliters for Pertalite," Mukhtarudin remarked.

Minister of Energy stated that the government has made continued efforts to meet the needs of fuel for the community and appeals to the community that is not the targeted group to abstain from buying subsidized fuel that is not designated for them.

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