Thursday, October 4, 2012

Ines: Subsidized FUEL Quotas Should Be Abolished

JAKARTA, -energy Observer, Ines argued, oil fuel quota systems (BBM) which is set in the budget subsidized income and Expenditures of the State (BUDGET) should be abolished. The reason, he said, was making the Community quota is limited in consume FUEL. "I would argue that you should include the needs of the popular FUEL should not be restricted," call Ines, when contacted Saturday (18/8/2012).

He explains, each year, the Government subsidized FUEL consumption through limiting the quota which is usually listed in the BUDGET. For example, in the 2012 BUDGET, subsidized FUEL quota set by 40 million kiloliter for 2012. However, Ines mentions, the quota was not realistic.

That is, the quota is smaller than the real needs of the community. As a result, subsidized FUEL quota was always exceeded. "As a result as if FUEL subsidies ballooned," he continued.

Therefore, Ines suggested that the quota was abolished. The reason, the Government should not limit FUEL consumption subsidized by encouraging economic growth and absorb more manpower. Then, said Ines, when quotas are eliminated then any raised fuel prices.

Ines mentioned, fuel prices raised the quantity has been touted before the Rp 1,500 to Rp 6,000 or per litre. "If there were quotas, automatic subsidies ballooned. In that context I would argue is better than raising the price of FUEL is limited (consumption), rather than the people forced to buy pertamax, "demolished Ines.

The previous Minister of energy and Mineral Resources and Jero Wacik, said the Government would immediately reduce FUEL subsidies starting next year. The effects, the Government may raise the price of FUEL. "That was like that. But, it's still a well thought out. This is not a decision, because it should be discussed with the HOUSE of REPRESENTATIVES, "said after meeting Jero encountered Financial Memorandum the President on Capitol MPR, Jakarta, Thursday night (16/7/2012).

However, Jero is actually also proposed to raise fuel prices, FUEL subsidies for the budget if it populace was revealed. "It makes one option, but not one decision," he added.

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