ID :
35336
Sat, 12/13/2008 - 07:00
Auther :
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https://www.oananews.org//node/35336
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BPH MIGAS AWAITING GOVT DECISION ON GASOLINE`S ECONOMIC PRICE
Jakarta, Dec 12 (ANTARA) - The Down-stream Oil and Gas Regulating Body (BPH-Migas) is waiting for the result of a government study on the economically realistic price of premium gasoline, a spokesman said.
While waiting for the outcome of the study, BPH-Migas was now processing a tender for the distribution of subsidized fuel oils in 2009, Jugi Prajogio, a member of the BPH-Migas Committee, said here Friday.
"After the government has arrived at a decision on the economically realistic price of premium gasoline, we will include a relevant clause on it in the contracts for subsidized fuel distribution," Prjogio said after a meeting with Energy and Mineral Resources Minister Purnomo Yusgiantoro here on Friday.
He said the economically realistic price of premium gasoline appeared to be dropping continuously and could ultimately be lower than the current subsidized premium price of Rp5,500 per liter.
If the government decided to stop subsidizing the premium gasoline price, it could still put the fuel in the category of certain oils whose retail prices must remain under governmental regulation.
"Thus, in 2009, there would be only three types of fuel oil remaining under governmental regulation, namely premium gasoline, diesel oil and kerosene," he said.
If the government set the premium gasoline price based on its economic price, then any company could engage in the distribution of fuel oils with an 88 octane content, he said.
"If the government set the premium gasoline price based on its economic price, its subsidy burden will be reduced," Prajogio added.
He said the policy would benefit the people because they would have different choices as there would be many companies competing in selling gasoline at a fair price.
So far, only state-owned oil company Pertamina has sold subsidized premium gasoline, even though BPH Migas has always put the distribution project on tender.
Besides premium gasoline, other subsidized fuels that the government has specified in the 2009 state budget are diesel oil and kerosene.
While waiting for the outcome of the study, BPH-Migas was now processing a tender for the distribution of subsidized fuel oils in 2009, Jugi Prajogio, a member of the BPH-Migas Committee, said here Friday.
"After the government has arrived at a decision on the economically realistic price of premium gasoline, we will include a relevant clause on it in the contracts for subsidized fuel distribution," Prjogio said after a meeting with Energy and Mineral Resources Minister Purnomo Yusgiantoro here on Friday.
He said the economically realistic price of premium gasoline appeared to be dropping continuously and could ultimately be lower than the current subsidized premium price of Rp5,500 per liter.
If the government decided to stop subsidizing the premium gasoline price, it could still put the fuel in the category of certain oils whose retail prices must remain under governmental regulation.
"Thus, in 2009, there would be only three types of fuel oil remaining under governmental regulation, namely premium gasoline, diesel oil and kerosene," he said.
If the government set the premium gasoline price based on its economic price, then any company could engage in the distribution of fuel oils with an 88 octane content, he said.
"If the government set the premium gasoline price based on its economic price, its subsidy burden will be reduced," Prajogio added.
He said the policy would benefit the people because they would have different choices as there would be many companies competing in selling gasoline at a fair price.
So far, only state-owned oil company Pertamina has sold subsidized premium gasoline, even though BPH Migas has always put the distribution project on tender.
Besides premium gasoline, other subsidized fuels that the government has specified in the 2009 state budget are diesel oil and kerosene.
