Ministry projects subsidized fuels to run out by October 2022

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The Ministry of Energy and Mineral Resources has projected that the quota of subsidized fuels, including of Pertalite gasoline, diesel fuel, and kerosene, will run out in October 2022.

Energy and Mineral Resources Minister Arifin Tasrif explained that the consumption of diesel fuel grew by 10 percent while that of Pertalite increased by 14 percent in the first quarter of 2022, while kerosene consumption is forecast to clock a growth of 10.09 percent in the fourth quarter of 2022.

“This reason is why we extrapolate until year-end because by October 2022, the quota will run out if we do not make any additions,” the minister cautioned.

To this end, he noted that the government had recommended to legislators to increase the subsidy fuel quota as a precautionary measure.

Tasrif explained that in the proposal, the quota for Pertalite should be increased by 5.45 million kiloliters (Kl), additional diesel fuel by 2.28 million Kl, and additional kerosene by 0.10 million Kl.

According to the minister, the proposed additions in the supplies of subsidized fuel paid attention to the post-pandemic rapid economic recovery and the widening price gap between subsidized fuel and non-subsidized fuel.

In the 2022 state budget, he elaborated, the volume of subsidized Pertalite quota was 23.05 million Kl, and as of April 2, 2022, some 6.48 million Kl has been realized or distributed, thereby leaving the remaining quota of Pertalite at 16.57 million Kl.

Furthermore, in the state budget, the subsidized diesel fuel quota amounted to 15.10 million Kl, with the distribution reaching 4.08 million Kl, so 11.02 million Kl still remained. The volume of the subsidized kerosene quota reaches 0.48 million Kl, with 0.12 million Kl been distributed, thereby leaving only 0.36 million Kl.

At the meeting, the Commission VII of the House expressed its support and agreed with the government’s suggestion to increase the quota of subsidized fuel: Pertalite, from 5.4 million Kl to 28.50 million Kl; diesel fuel, from 2.28 to 17.39 million Kl; and kerosene, from 0.10 to 0.58 million Kl.

Source: Antara News