Indonesia energy ministry to consider additional quota for subsidised fuel as demand rises

By Reuters News

- Indonesia's energy minister said on Friday that he was considering requesting an additional subsidised fuel quota for this year as consumers look for cheaper options.

  • The ministry is calculating a possible increase in the distribution of 90-octane gasoline, known as Pertalite, as buyers shift away from 92-octane fuel, which is not subsidised, Energy and Mineral Resources Minister Bahlil Lahadalia told reporters.

  • The additional volume and subsidy costs are still being calculated, he said.

  • The government has pledged to keep the subsidised fuel price unchanged until the end of the year.

  • The government has allocated 29.27 million kilolitres of Pertalite for distribution this year.

  • By August 20, 18.23 million kilolitres had been sold, data from downstream oil and gas regulator BPH Migas showed.

  • Since the price of non-subsidised fuel rose in early June, average daily consumption of Pertalite has been around 10% higher, BPH Migas data showed.

  • Indonesia's Ombudsman said earlier this month that fuel supply disruptions have been reported across several provinces, including Bali, North Sulawesi, West Sulawesi, Southeast Sulawesi, West Papua, and West Kalimantan, with vehicle queues stretching to around 1 km (0.6 miles) in several locations.

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