The House of Representatives Ensures Pertalite Fuel Quota Added 5 Million KL

JAKARTA - Commission VII of the House of Representatives (DPR) has confirmed that the quota for subsidized fuel oil (BBM) for the Pertalite type will be increased by 5 million kiloliters (KL) to 28 million KL in 2022.

This is in line with the increasing consumption of fuel oil in the country.

Chairman of the Commission VII of the House of Representatives, Sugeng Suparwoto, said that after the COVID-19 pandemic, fuel consumption rose in line with the return of community activities.

However, said Sugeng, the problem is that world oil prices continue to rise.

Furthermore, Sugeng said, the increase in world oil prices had an impact on fuel prices as well as subsidies and compensation disbursed by the government.

"Fuel consumption is rising, and that's positive. The only problem is the price of crude and fuel goes up, so look at the 2022 state budget for the fuel subsidy at IDR 134 trillion. Where the fuel subsidy is IDR 77 trillion, electricity subsidy is IDR 57 trillion. But that's with the basic assumption, namely our ICP 67 dollars per barrel. It turns out that the ICP is an average of 100 dollars per barrel. So like it or not, the total subsidy and compensation will be Rp443 trillion," he told reporters when met at JCC Senayan, Central Jakarta, Thursday, July 28.

Sugeng said, this figure is the amount that has been agreed by the government.

The budget includes the addition of a subsidized fuel quota.

"That includes the increase in volume from 23 million kiloliters of Pertalite, I'm sorry, we're talking about subsidized ones, right, to 28 million kiloliters," he said.

Sugeng emphasized that the determination of the increase in the volume of subsidized fuel has become an agreement between the DPR and the government. Including the addition of kerosene quota.

"Between the government, represented by the Minister of Energy and Mineral Resources, and us at Commission VII, it was determined that there was an increase in the volume of subsidized fuel by 5 million kiloliters in BBM. This includes kerosene. Right from 500,000 kiloliters, it was added more or less 20,000 or how much, basically, there is an increase. Because in fact there is an increase in consumption," he said.

"But this later in Banggar has not become a final word, because macro assumptions have also changed and yesterday there was only an indicative ceiling, after this the President will present a financial note after the president's speech," concluded Sugeng.