Ministry Hopes Fuel Consumption Growth to go Gown

Jakarta (Antara) - The Ministry of Finance hopes that the growth of subsidized fuel consumption will this year decline compared with that in the past three years so that pressures on the state budget can be reduced. "Consumption of subsidized premium gasoline in the last three years increased by about 10 percent and diesel oil by about 9.1 percent," Head of the Subsidy Policy Affairs of the Fiscal Policy Agency of the Ministry of Finance, Noor Iskandarsyah, said here over the weekend. Noor Iskandarsyah expressed hope that subsidized fuel consumption could be reduced to about 5 to 7 percent per annum. The policy taken to offset consumption growth was raising subsidized fuel prices in June, 2013. He said that the big disparity between the price of subsidized fuel and non-subsidized fuel had led to the increase in the consumption of subsidized fuel. The increase in the subsidized fuel prices in June has led to the narrowing of the gap between subsidized and non-subsidized fuel prices. He said that the government should continue to control fuel subsidy by improving management in the demand and supply. On the demand aspect, it could be done by among others limiting consumption, raising fuel prices and support from other parties. The restriction of fuel consumption is carried out by, among other things, banning official vehicles, state firms, regional government owned firms (BUMD), the mining sector and forestry from using subsidized fuel. He said it should also be supported with the availability of mass transportation, non fuel powered vehicles and others. On the other hand, the use of vegetable-based fuel and gas should also be increased. (*)