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Indonesia Tries to Increase Fuel Oil Production

Posted on: Thursday, 7 July 2005, 09:01 CDT

Indonesia tries to increase fuel oil production

JAKARTA, July 6 (Xinhua) - Indonesia's Energy and Mineral Resources Minister Purnomo Yusgiantoro said here Wednesday that the government had asked PT Pertamina, a state oil company, to produce more fuel oil to meet domestic demand.

"We have asked Pertamina to supply fuel oil in accordance with the increasing demand," Purnomo said on the sidelines of a discussion on electricity business.

Purnomo said smooth distribution of fuel oil was necessary to ensure adequate supply everywhere in the country.

He said that Pertamina had been asked not to retain fuel oil in its stock, especially its premium gasoline stock, and to distribute the fuel oil to consumers in accordance with demand.

Previously, Pertamina has tightened fuel oil supply in view of the upward spiral in the world oil price up to 70 US dollars per barrel.

But Purnomo also called on the public to save fuel oil.

Fuel oil consumption over the past five months has increased by 10 percent, he said, adding that if people did not economize, the consumption figure would increase further and, as consequence, the government would have to spend more money on fuel oil subsidy.

"So, let us economize fuel oil," Purnomo said.

Currently, Pertamina set a quota of producing 59.6 million kiloliters fuel oil to meet local demand until the end of 2005. But the demand is expected to surpass the quota.

Source: Xinhua News Agency - CEIS

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