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Just Fooling on April First?

Skepticism Grows that Indonesia Unable to Implement Fuel Price Hike Policy on April 1, 2012


Bali News: Just Fooling on April First?
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(1/21/2012)

Tempo Interactive reports that the State-Owned Oil company Pertamina have publicly admitted that are not prepared to implement the government policy to sell non-subsidized Pertamax fuel to the public on April 1, 2012.

“From the 3,062 gas stations in Java and Bali, there are 687 stations that haven’t switched their tanks to Pertamax,” said Pertamina’s director Karen Agustiawan, when reporting the National Energy Commission. The 687 stations that do not have Pertamax fuel will require time to make the necessary changes in their facilities, 295 of which will require additional investment to realize the changeover.

The government has announced their intention to stop the sale of premium gasoline to the general public on April 1st, limiting the sale of subsidized fuel to public transportation and motorcycles. Under the new policy, other vehicles will be required to purchase substantially more expensive Pertamax.

Even Indonesian Minister of Energy and Mineral Resources, Jero Wacik, has expressed his skepticism that the April 1, 2012 target date for the policy change in fuel supply can be met. Saying the government was considering all options to reduced the burden of fuel subsidies, Wacik added, “whether to increase the price a little or convert all to Pertamax or gas, that’s all possible and I don’t know when it’s going to be effective yet.”

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[Fuel Cost to Go Up for Most in April 2012]

 


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