Monday, July 25, 2011

Subsidized Fuel Consumption

This morning I went to a Pertamina fuel station on the way to my office to refill my car's half-empty fuel tank.

The station attendant asked what type of fuel do I want, Premium or Pertamax ? And I said Pertamax-92.

While my car's fuel tank was being refilled, I asked the attendant whether there are still private cars that refill with Premium fuel which costs Rp 4,500 per Litre compared to Pertamax-92 which costs Rp 8,100 per Litre, and he confirmed.

I asked the question because when I entered the fuel station there was a banner on the wall saying that Premium is a subsidized fuel that should only to be used by public transportation (and not private vehicles).

And recently the Indonesian Moslem Cleric Council (MUI) has even planned to issue a Fatwa/Edict that declare that it is Haram/Forbidden for private vehicles to consume Subsidized Fuel. This plan was cancelled after it was protested by public.

For me, the reason why I use the non-subsidized fuel Pertamax because the car maker has clearly stated when I bought the car that the suitable fuel for my car is high Octane fuel such as Pertamax.

I believe that subsidy for fuels should be reduced, and its consumption should be limited only for public transportation. That way the money used for subsidy can be used for other things like education, health, for the poor etc. 

But considering that the condition of public transportation in big cities like Jakarta is still bad, mass-rapid transportation should inevitably be developed, so that people would want to leave their vehicles at home.

At the end of the day, traffic jams and air pollution can be minimized.  


Umihoney said...

Hi Harry,
The pro easily outweigh the cons as far as public transportation is concerned. However implementing it is another story. Its not impossible though but it is also not cheap to begin with to ensure enough buses or whatever,so that people are willing to leave their car at home or at transit point.

Definitely this will ease traffic jam and pollution.Hopefully the culture of using public transport can be evolve..well provided the public transport is reliable and dependable.

Have a great day Harry.Glad to be here always

Meutia Halida Khairani said...

honestly, i agree to MUI to state the use of susidized fuel Haram. besides it can reduce the private transportation in Jakarta, reduce traffic jam, the air can be fresher... huu, i miss that time.

Joe in Jak said...

I think I speak for a lot of people when i say public transport has to be A LOT better than what is being offered now for people to switch.

That and when government can show us that they are using public tax money effectively (i.e. not putting it in their pockets, or wasting it through inefficiency)then I will start helping by buying non-subsidized fuel.

It makes a lot of people angry when the government say they don't have enough budget because they are subsidizing fuel, when the truth is because they are stealing it.

JASMINE said...

So..., do i look like a sinner? since i still use premium? hihi..

Deeahzone said...

Subsidized fuel consumption is not properly used by the people who needs but also so much people choose to fill their vehicles with subsidiez fuel.. i agree that public transportation must be better service so that people will change to use public transportation instead of using personal car/vehicles.

Thanks Harry Nizam.

Vainit said...

Saya sangat setuju Sekali jika Dana Subsidi di alihkan untuk Pendidikan.. Subsidi BBM tidak setuju, Mending mahal agar masyarakat kita tidak Boros :)

Wisata Murah said...

I agree abolished subsidies
and I agree more income sectors of society in Raise
maybe in a big city does not feel the economic difficulties
but in rural communities do scream, but no sound

Furree Katt said...

i agree with Joe in Jak! almost the same thing is happening in Pakistan. the public transportation isn't barely used by middle class/upper-middle class because the conditions are not good at all. and the price of petrol is high, the government is putting the money in its own pocket instead of doing something to reduce pollution/make public transport more efficient. it's quite unfair.

Multibrand said...

The most important thing in this case is the government's strong will to develop MRT, so that investors would want to place their money on such project.
Lately we are going that way, and Jakarta will soon start building a subway.

Thank you for your comment my dear Umi.

Let us hope there will be improvements soon.

@Joe in Jak,
I share opinion, and prefer to buy much cheaper fuel.
But as I said my car is built for higher octane fuel like Pertamax. Otherwise it would effect performance and damage parts of the car : expensive to repair.
Anyway my car's fuel consumption is 1 litre :15 km, thus much cost efficient than many other cars.
Beside that, with higher octane and lower pollutant I would help clean the air.

It's a matter of choice.

Let us hope that the subway would soon be ready so that more people would want to use public transportation.

Anda benar.

@Wisata Murah,
Let us hope that things would improve soon.

@Furree Katt,
I believe that the best way would be to keep on pushing the government to provide better transportation.

r10 said...

aku juga pakai pertamax untuk honda beat, krn performa saat pakai premium bikin honda beat mogok

Jolly Princess said...

Sounds like Indonesia and Philippines have so much in common. :)

I am glad to be online again, Harry.

colson said...

Does this really mean that till now, though subsidized "Premiun" is meant to be used by public transport only, it also is available for those who are not entitled to it?

[By the way: I really envy people who have to pay only Rp 8100 per litre (= less than € 0.70), compared to € 1.72 - € 1.79 per litre we pay over her :(.]

TUKANG CoLoNG said...

jika emang benar akan dialihkan, harus selalu diawasi. misalnya saja ke pendidikan,definisi pendidikan itu sendiri harus dipaparkan dengan jelas. yang mana termasuk pendidikan. jangan seperti pelatihan pegawai, studi banding menteri, juga termasuk pendidikan yang didanai!!

Multibrand said...

Pertamax akan mempengaruhi perfomance kendaraan kita.

You are right, our countries have similarity in this case.

The government has been planning to limit consumers of subsidized fuel but failed. For which purpose it has trying to socialize it.

Setuju dengan anda. Uangnya harus di awasi penggunaannya.

pj said...

I'm of the opinion that if you can afford the car you can afford the gas. I'm surprised they haven't started coloring the subsidized fuel and penalizing those caught out with colored gas in their tank.
With the price of fuel becoming so high the subsidy is a luxury the government can no longer afford.

Multibrand said...

I fully agree with you.
They should start coloring the subsidized fuel and penalizing those who are caught using those fuels in their tanks.