Govt to Limit Motor Vehicles' Subsidized Fuel Consumption

Jakarta (Antara) - The government is set to limit the use of subsidized fuels by motor vehicles by applying an information technology-based system in and around Jakarta as of July 2013, an Energy and Mineral Resources Ministry official said. Under the policy, motor vehicles will only be allowed to use subsidized fuels at a reasonable rate, the ministry's director general of oil and gas Edy Hermantoro said here on Monday. "We have calculated it. For instance, if a motor vehicle consumes 20-30 liters of subsidized fuel every day it will not be allowed to buy more than that once the limitation is imposed," he said. The maximum volume of subsidized fuels allowed for motor vehicles will depend on whether they are private, public transport or commercial cars, he said. Edy said the policy to limit the use of subsidized fuels using an IT-based system is particularly designed to prevent abuse of subsidized fuels and therefore, energy subsidies in the 2013 state budget can be lowered. The policy is not intended to limit the use of subsidized fuels based on engine capacity, production year or off-limit policy, he said. He said state oil and gas firm Pertamina is in the middle of conducting a tender for the procurement of information technology to control the distribution of subsidized fuels. "Under this system, the purchase of subsidized fuel by each motor vehicle will be recorded. If the purchase exceeds the permissible amount, the nozzle at the gas station will automatically switch off," he said. Pertamina will cooperate with the police in implementing the policy, he said. He said the government will intensify the control of subsidized fuel consumption under government regulation number 1 of 2013 pending the policy to limit the use of subsidized fuels using the IT-based system. Under the regulation, the government has set itself the target of saving 1.26 million kiloliters of subsidized fuels this year. Pertamina has shortlisted two companies to bid for the procurement of the IT-based system. They are PT Telkom Tbk and PT Inti. Both have submitted truth of concept (TOC) to Pertamina. (*)