Govt proposes cut in volume of subsidized fuel

The government has proposed to the House of Representatives a cut in the volume of subsidized fuel to 19.9 million kiloliters, down from 46.79 million kiloliters in 2014.

Energy and Mineral Resources Minister Sudirman Said in a working meeting with the House’s Commission VII said the proposed cut followed the scrapping of subsidies on Premium gasoline after global oil prices had plunged.

  • plunged – tercebur

The government did not change the volume of subsidized liquefied petroleum gas (LPG) in its proposal from the 5.76 million tons in 2014, according to Antara news agency.

“I think the volume is the same , therefore, no need for any additional volume,” Sudirman said regarding LPG.

However, there was a significant increase in the subsidy on biofuel proposed for 2015, he said. “The subsidy on biodiesel is raised to Rp 15,000 [US$1.18] from Rp 5,000 per liter in 2015 and that on bio-ethanol from Rp 2,000 to Rp 3,000 per liter,” he added. (***)

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