Minimize Potential Shift In Fuel Consumption, Pertalite Users Are Proposed To Be Limited

Illustration of queues at gas stations (Photo: Antara)

JAKARTA - The government and PT Pertamina (Persero) can minimize the potential for shifting fuel consumption from non-subsidized Pertamax to subsidized Pertalite by prohibiting government and BUMN vehicles from filling subsidized fuel, said Chief Economist of Bank Permata Josua Pardede.

In addition, according to him, the government and Pertamina can select private vehicles that fill Pertalite.

"For example, luxury vehicles with engine capacity or certain brands are prohibited from filling subsidized fuel. Supervision of fraud also needs to be tightened," said Bank Permata chief economist Josua Pardede as quoted by Antara, Sunday.

The high price difference between Pertalite and Pertamax fuel oil has the potential to spur a shift in consumption from Pertamax to Pertalite. With this potential, Pertamina and the Government must try to minimize the shifting.

Josua assessed that the government's policy of not increasing the price of Pertalite was good enough to protect people's purchasing power. With the stipulation of the Pertalite price, the public still has the option of cheap fuel in the midst of economic pressure due to COVID-19.

"Pertamax is indeed worth increasing the price considering that consumers from Pertamax tend to be upper middle class people," he said.

Pertamina, starting Friday (1/4/2022) in the morning, adjusted the price of Pertamax to Rp. 12,500 per liter from the previous Rp. 9,000.

This price increase is the first time in three years. Meanwhile, the price of Pertalite remains at Rp. 7,650 per liter, but the government has upgraded its status from non-subsidized BBM to Assignment BBM. Pertalite consumption nationally reached 76 percent while Pertamax was around 14 percent.

Yayan Satyakti, an energy economics expert from the Faculty of Economics and Business, Universitas Padjadjaran, assessed that the potential for Pertamax users shifting to Pertalite is quite high. Therefore, Yayan suggested that there be a limit on the number of Pertalite quotas in areas with high per capita income.

"For example, Pertalite is located in rural areas, while all urban areas are Pertamax," he said.

If in urban areas there are vehicles that use Pertalite, continued Yayan, the designation is for vehicles with yellow license plates or public transportation. Thus, Pertalite still exists in the City but, its designation must be truly effective.

"The quota is limited for public transportation," he said.

Head of the Communications, Public Service and Cooperation Bureau of the Ministry of Energy and Mineral Resources (ESDM) Agung Pribadi in a press release stated that the still high price of oil and entering Ramadan followed by a gradually recovering economic condition could encourage an increase in fuel consumption.

The government together with Pertamina ensure that the supply of fuel is available, especially the fuel that is consumed the most by the public, including Pertalite. Likewise, the supply of diesel fuel will be increased and the stock will be kept above 20 days.

"The government guarantees the availability of fuel and coordinates with business entities, in this case Pertamina. Pertamina has carried out direct checks on the field to ensure the availability of fuel and anticipate increasing demand, especially in the month of Ramadan," said Agung.

Meanwhile, Pertamina has formed the RAFi (Ramadan & Eid) task force. Pertamina has also prepared various additional services in the form of standby gas stations, standby tank cars, motorists, pocket gas stations and rest areas equipped with health facilities for travelers at several points on the homecoming route.