ID :
17333
Thu, 08/28/2008 - 23:00
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SUBSIDIZED KEROSENE CONSUMPTION TO BE REDUCED BY 4 M KL IN 2009: OFFICIAL

Jakarta, Aug 28 (ANTARA) - The government's target in its kerosense-to-LPG (liquefied petroleum gas) conversion program for 2009 is to replace four million kiloliters of subsidized kerosene with 1.6 million tons of LPG, a senior energy ministry official said.

Director General of Oil and Gas at the Energy and Mineral Resources Ministry Evita Legowo said, under the program, subsidized kerosene consumption would be reduced to 5.8 million kiloliters in 2009.

"The (consumption) target of 5.8 million kiloliters was agreed on at a meeting between the energy minister and the Commission VII of the House of Representatives last June 4," Legowo said in a hearing with the commission on Thursday.

The government began the program in December 2006 with state oil and gas firm PT Pertamina playing a leading role in its implementation.

In its 2008 program, the ministry was supposed to switch consumption of 2.013 million kiloliters of kerosene to 1.144 million tons of LPG.

The government had targetted to provide subsidy for 36.85 million kiloliters of fuel oil in 2009. The quota would comprise 19.44 million kiloliters of premium oil, 5.8 million kiloliters of kerosene, and 11.61 million kilolliters of diesel oil.

The quota was two million kiloliters lower than that agreed in the previous meeting on June 4 which set 38.85 million kiloliters of fuel oil as the subsidy target, comprised of 20.44 million kiloliters quota for premium oil, 5.8 million kiloliters of kerosene, and 11.61 million kiloliters of diesel oil.

Legowo said, the government would run the energy conservation and diversification in a bid to reach the quota target.

The conservation program would be conducted through save-energy and familiarization campaigns.

While fuel oil diversification program would be conducted through conversion of consumption from kerosene to LPG and requirement to use biofuel for industry, transportation, power plants, as well as the use of Compressed Natural Gas (CNG) and Liquid Gas for Vehicles (LGV).

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