House Approves Fuel Oil Quota at 48 Million Kiloliters

Jakarta (Antara) - The House of Representatives (DPR) has approved the government's proposal to set subsidized fuel oil quota at 48 million kiloliters under the revised 2013 state budget. "The House Commission VII accepts and approves the energy and mineral resources minister's proposal to raise the quota of subsidized fuel oil to 48 million kiloliters in the draft revision of the 2013 state budget with a number of notes," House Commission VII Chairman Sutan Bhatoegana said at a working meeting with the government at the parliament building early Wednesday. The House also approved oil and gas production at 2,080 barrels per day consisting of 840 thousand barrels of oil and 1,240 barrels of gas, he said. He said the quota of subsidized fuel oils comprises 30.77 million kiloliters of gasoline and bio-ethanol, 1.2 million kiloliters of kerosene and 16.03 million kiloliters of diesel oil and bio-diesel. The House also agreed on the production of liquefied petroleum gas (LPG) in 3-kg cylinders at 4.39 million tons. Both the government and the parliament agreed to set the subsidy of bio-diesel at Rp3,000 per liter, bio-ethanol at Rp3,500 per liter and LGV at Rp1,500 per liter. At the meeting the Indonesian Democratic Party of Struggle (PDIP) and the Prosperous Justice Party (PKS) factions proposed that oil lifting (oil sold) be raised to 865 thousand bpd. "All agree to set gas lifting at 1,240 bpd. Only FPDIP, FPKS and FPAN (National Mandate Party) want it raised to 1,360 bpd," he said. (*) Reporting by Anita Permata Dewi, Editing by Suharto