Regional Governments Urged to Tighten Subsidized Fuel Supervision

Palembang, S Sumatra, Nov 27 (ANTARA) - Coordinating Minister for Economic Affairs Hatta Rajasa asked regional governments on Monday to tighten the supervision of subsidized fuel distribution in their regions. They must tighten the supervision because state oil and gas company Pertamina continues to distribute subsidized fuels, Hatta said commenting on the current supply of subsidized fuels. Hatta is in the South Sumatra provincial capital of Palembang to attend the 18th congress of Muhammadiyah Students Association to be held from Nov 26 to 29. The quantity of subsidized fuels is not reduced but is increased. Thus, the people should not be worried about the current supply of subsidized fuels, he said. What is important, the regional governments should tighten the supervision of subsidized fuels so that they will not be abused, he said. Under the 2012 state budget, the government has set the quota of subsidized fuels at 40 million kiloliters. But because of rising consumption, the quota has been raised to 44.04 million kiloliters in the revised 2012 state budget. Yet an upward trend in subsidized fuel consumption has led to oil officials predicting that oil consumption would reach 45.373 million kiloliters at the end of 2012. In an effort to prevent the consumption from exceeding the quota, the government is tightening subsidized fuel consumption by taking a number of measures, including limiting fuel consumption by certain vehicles, launching a subsidized fuel-free day and introducing a new payment system.