Consumption of Kerosene and Solar Fuel Decreased in 2016

Kerosene and diesel consumption as of June 2016 remained lower than the quota set in the 2016 State Budget of 16.7 million kiloliters (KL). According to the Upstream Oil and Gas Regulatory Agency (BPH Migas), the realized distribution as of June 2016 was only around 41 percent, or 6.8 million KL. This achievement is almost comparable to the same period the previous year, which reached 40.6 percent.

The realization of kerosene and diesel fuel subsidies, according to BPH Migas records, has almost always been below the quota set by the Government and the House of Representatives (DPR). Data from 2012-2015 shows that excess quota only occurred in 2014 at 1.72 percent. Furthermore, in 2012 realization was only 99.6 percent, in 2013 it was 96 percent, and in 2015 distribution only reached 83 percent.

The decrease in realization figures is due to increased effectiveness of supervision in fuel distribution and is influenced by the small price disparity between subsidized and non-subsidized fuels.

BPH Migas notes in presenting data for 2015 and the first half of 2016 that the graph appears lower than before because it was released without considering premium gasoline, which is categorized as a separate fuel. However, in terms of quota and consumption, the amount in 2016 was lower than in 2015.