Govt Commences Conversion to Gas Fuel

Kartini L. Makmur, Andin Aditya Rahman

The recent reduction in the petroleum subsidy due to its burden on the State Budget is to be immediately followed by a government initiative for a migration from the use of petroleum to using gas fuel. This program is a national priority of the Government as a solution to the current high dependence on petroleum.

“Dependence on petroleum is very dangerous, due to its finite supply and and the continued rise in its price. The use of petroleum is also a burden on the State Budget because of thesignificant subsidy allocation it requires,” said Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources.

The Ministry of Energy and Mineral Resources will initiate the Government’s plan for the promotion of the conversion from petroleum to gas use starting with fishermen throughout Indonesia.

The rationale behind this policy is that fishermen are the most vulnerable group when petroleum prices rise. According to the Deputy Minister, the use of gas fuel will noticeably decrease fishermen’s operational costs as the price of gas fuel is cheaper than the petroleum which is usually used by fishermen.

“A fisherman will usually use about 10 to 20 liters of diesel a day, spending about IDR 55 thousand to IDR 110 thousand. If gas fuel is used, the same fisherman will only need 4 to 8 kilograms of gas at a cost of IDR 17 thousand to IDR 34 thousand,” the Deputy Minister explained.

The Government has prepared free converter kits for underprivileged fishermen. For this year, free converter kits will be distributed to fishermen in West Tanjung Jabung, Jambi and Pacitan, and East Java.

Herry Putranto, Head of the Compressed Natural Gas Business Association (APCNG) reported that many companies have joined APCNG in applauding the Government’s policy of converting to gas fuel. Herry also said that the Government must also prepare a plan to make gas fuel the primary fuel for other vehicles, such as ground vehicles.

“If gas is made as the primary energy source for fuel, this will of course provide efficiency for the general public. The price of gas fuel is not even half of premium’s price. The subsidy for gas is small, no more than IDR 700 per liter compared to the petroleum subsidy that can be as much as IDR 2,500 per liter,” he asserted.

Furthermore, he also made the point that the use of gas fuel for ground vehicles will result in a much healthier environment. According to Harry, exhaust gases from gas fuel can reduce the level of pollution in Indonesia’s already exceptionally polluted cities.

However, Herry further added thatbusinesses in the gas industry will be more enthusiastic in their support of the Government’s gasconversion initiative if the Government raises gas fuel prices.

“We hope that the Government will legislate profitable prices. As of now, the selling price for gas fuel is IDR 3,100 per liter. Our request is a price of at least IDR 3,600 per liter,” Herry concluded.

(hot/kc)

Kartini L. Makmur, Andin Aditya Rahman

The recent reduction in the petroleum subsidy due to its burden on the State Budget is to be immediately followed by a government initiative for a migration from the use of petroleum to using gas fuel. This program is a national priority of the Government as a solution to the current high dependence on petroleum.

“Dependence on petroleum is very dangerous, due to its finite supply and and the continued rise in its price. The use of petroleum is also a burden on the State Budget because of thesignificant subsidy allocation it requires,” said Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources.

The Ministry of Energy and Mineral Resources will initiate the Government’s plan for the promotion of the conversion from petroleum to gas use starting with fishermen throughout Indonesia.

The rationale behind this policy is that fishermen are the most vulnerable group when petroleum prices rise. According to the Deputy Minister, the use of gas fuel will noticeably decrease fishermen’s operational costs as the price of gas fuel is cheaper than the petroleum which is usually used by fishermen.

“A fisherman will usually use about 10 to 20 liters of diesel a day, spending about IDR 55 thousand to IDR 110 thousand. If gas fuel is used, the same fisherman will only need 4 to 8 kilograms of gas at a cost of IDR 17 thousand to IDR 34 thousand,” the Deputy Minister explained.

The Government has prepared free converter kits for underprivileged fishermen. For this year, free converter kits will be distributed to fishermen in West Tanjung Jabung, Jambi and Pacitan, and East Java.

Herry Putranto, Head of the Compressed Natural Gas Business Association (APCNG) reported that many companies have joined APCNG in applauding the Government’s policy of converting to gas fuel. Herry also said that the Government must also prepare a plan to make gas fuel the primary fuel for other vehicles, such as ground vehicles.

“If gas is made as the primary energy source for fuel, this will of course provide efficiency for the general public. The price of gas fuel is not even half of premium’s price. The subsidy for gas is small, no more than IDR 700 per liter compared to the petroleum subsidy that can be as much as IDR 2,500 per liter,” he asserted.

Furthermore, he also made the point that the use of gas fuel for ground vehicles will result in a much healthier environment. According to Harry, exhaust gases from gas fuel can reduce the level of pollution in Indonesia’s already exceptionally polluted cities.

However, Herry further added thatbusinesses in the gas industry will be more enthusiastic in their support of the Government’s gasconversion initiative if the Government raises gas fuel prices.

“We hope that the Government will legislate profitable prices. As of now, the selling price for gas fuel is IDR 3,100 per liter. Our request is a price of at least IDR 3,600 per liter,” Herry concluded.

(hot/kc)

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