Pertamina Projects a 14% Increase in Subsidized Diesel Fuel Demand from the 2022 Quota

The supply of fuel oil (BBM), especially subsidized solar, sold by PT Pertamina (Persero), has recently been observed to be scarce in several regions.

According to Pertamina's President Director, Nicke Widyawati, the scarcity of subsidized solar is due to increased public demand exceeding the 2022 subsidized solar quota.

The 2022 retail quota for subsidized solar allocated for distribution by Pertamina was only 14.05 million kiloliters (KL), down about 5% from the previous year. However, demand for subsidized solar is predicted to increase to 16 million KL, a 14% increase from the quota.

Furthermore, Nicke explained that the scarcity of subsidized solar is also due to the widening price difference with non-subsidized solar. The price difference between subsidized and non-subsidized solar is now Rp7,800 per liter.

Another cause is the increase in consumption of subsidized solar fuel. Subsidized solar consumption accounts for 93% of total solar fuel consumption.

Meanwhile, non-subsidized solar fuel consumption only reaches 7%. She stated that queues for subsidized solar are prevalent in palm oil and mining industrial areas.

"These queues are largely from the palm oil and mining industries. We suspect many are using subsidized solar. And it seems that sales of non-subsidized solar are down, while subsidized solar is up, even though industrial activity is increasing," said Nicke in a meeting with Commission VI of the Indonesian House of Representatives (DPR RI) on Monday, March 28, 2022.