BPH Migas Held Discussion Forums with Downstream Entities

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forumJAKARTA. Regulatory Agency for Upstream Oil and Gas (BPH Migas), Tuesday (22/04/2014) carry Discussion Forums with business entities, at the Hall Building BPH Migas. Discussion forums conducted in the framework of two-way communication between the Governing Body and the entities regulated and supervised.

“One of the tasks of BPH Migas is set and the set up and the fuel has not been touched . Though it is quite important reserves . For example, the government buffer stock of 30 days , 15 days entity reserves,” he concluded.

On that occasion , Andy also revealed the problems of national fuel reserve or buffer stock . According to him , although BPH Migas conduct regulation and supervision , if there is no buffer stock , Indonesia will always be a shortage of fuel , which in turn can inhibit or interfere with the activity and stability of energy security.

“Based on past experience and the current state, BPH Migas expects supply has been rationed does not exceed the quota , ” said Andy.

The government has actually had a road map for how long the subsidy will be provided . However, there is another scheme , which is still subsidized , but should be well targeted and quantity . Quota of subsidized fuel in 2014 amounted to 48 kiloliters comprising 32.46 million kiloliters of Premium , 900,000 Kl of kerosene and 14.64 million kiloliters of diesel oil , however, is still lacking in every year.

On the occasion, Chief Andy Noorsaman Sommeng BPH Migas , proposed subsidy of fuel oil ( BBM ) is gradually removed to the market mechanism so that the government is not burdened . ” Indonesia is no longer a producer of crude oil because it relies on imports to meet domestic demand of 1.4 million barrels per day . Our crude oil production is only about 803,000 barrels per day . With these conditions , the subsidies are not good , the article , when crude prices rise, the greater the burden on the state will ” Andy said.