Pertamina Ready to Distribute Fuels Until End of Year

Jakarta (Antara Bali) - Energy and Mineral Resources Minister Sudirman Said assured that state-owned oil and gas enterprise Pertamina was ready to distribute subsidized fuels until the end of 2014.

"Pertamina assures its readiness to provide stock even though consumption will slightly exceed premium gasoline and diesel oil quota set in the revised 2014 state budget at 46 million kiloliters," the minister said.

The minister made the remarks after attending a coordination meeting on fuel oil quota, oil refinery plant development and electricity issues here on Wednesday night.

"We will use the quota as set in the revised 2014 state budget. Pertamina has been assigned to provide stock based on the subsidy price," he added.

In the face of the New Year's Eve festivities, gasoline and diesel oil supplies will be guaranteed by Pertamina, even though consumption will exceed the 46 million kiloliter quota, according to Minister Said.

"Pertamina is requested to use its own money first to cover the shortage of fuel supplies. The government will later refund it," the minister remarked.

Finance Minister Bambang Brodjonegoro said that the additional cost to cover the shortage in the distribution of subsidized fuel will come from corporate funds which will later be refunded by the government after Pertamina is audited to that effect by the State Audit Board (BPK).

"The funds will come from Pertamina. They said the funds will come from the company and they are ready to provide stock until December 31, 2014. What is important is that Pertamina will not suffer a loss in business term," the finance minister said.    

It is expected that the need for fuels will increase in the runup to the end of the year. Consumption will increase in the face of X'mas and New Year celebrations. For this,  stock and distribution should be secure and should not undergo disturbance. (WDY)