Private Vehicle Premium Ban May Start in September

The government may prevent private vehicles from using Premium, the low-octane subsidized gasoline, in an effort to curb the surging costs of fuel subsidies.

Energy Ministry official Evita Legowo said on Thursday that the ban may be imposed after Idul Fitri, which comes at the end of next month. The ban was planned for last year but was delayed.

Now the government may have little choice but to introduce it after the House of Representatives Budget Committee approved a subsidized fuel quota lower than that proposed in this year’s revised budget.

This means a method of limiting subsidized fuel consumption is necessary, Evita said.

“I hope we start curbing Premium usage this year instead of next year,” she said. “The sooner the better.”

The House approved a subsidized fuel quota of 40.5 million kiloliters, less than the 42 million kiloliters proposed by the downstream oil and gas regulator, BPH Migas, which supervises subsidized fuels including Premium, diesel and kerosene.

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