Indonesia plans higher Pertalite subsidy quota as demand rises
The government is studying an increase as consumers switch from non-subsidised fuels, according to minister Bahlil Lahadalia.
Indonesia plans to expand the quota for subsidised Pertalite (RON 90) fuel to meet growing demand, Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said. The size of the increase remains under study, and the government has assessed its potential budgetary impact.
Speaking to reporters in Jakarta, Bahlil said more consumers were moving away from non-subsidised products, including Pertamax (RON 92), towards Pertalite. He linked the shift to higher fuel prices caused by the conflict involving the United States and Iran, which he said had severely disrupted shipping through the Strait of Hormuz.
The Downstream Oil and Gas Regulatory Agency (BPH Migas) reported that Pertalite use increased after the government lifted the Pertamax price on June 10 from Rp12,300 to Rp16,250 per litre. Before that change, Pertalite consumption averaged 75,795 kilolitres a day.
BPH Migas Head Wahyudi Anas said June's daily average reached 82,760 kilolitres, up 9.19 per cent, or 6,965 kilolitres. In July, the agency reported a 12.92 per cent increase to a daily average of 85,589 kilolitres. Consumption then eased in August to 84,368 kilolitres a day.
