The planned policy was intended to help state-owned oil and gas company Pertamina purchase oil for the domestic market according to the state budget's assumption on Indonesian Crude Oil prices (ICP)The ministry's oil and gas director general, Djoko Siswanto, said on Thursday that the government preferred to provide the largest subsidy for the Solar diesel fuel brand than to provide Pertamina with crude oil prices based on the ICP assumption, which was set to US$48 per barrelMeanwhile, the average real price of crude oil was $67 per barrel in April“Both are similar It is just a difference in mechanism – one from upstream, the other from downstream,” Djoko said in Jakarta on Thursday as quoted by kontan.co.idEnergy and Mineral Resources Minister Ignasius Jonan said during the meeting on Wednesday that additional subsidies would be drawn from the windfall of crude oil salesDjoko said providing Pertamina with the ICP |assumption was more |complicated, because once |crude oil was processed at the refinery, the product output would be subsidised Premium gasoline, subsidized Solar diesel fuel and aviation turbine fuel (avtur)The result is uncertain How much Premium, Solar and avtur will we get from one barrel of crude oil? Providing subsidies will be more certain,” he addedDjoko said the subsidy for 1 liter of Solar will be 1,000 |rupiah (7 cents US) to 1,500 rupiah from the current subsidy of 500 rupiah per litre Meanwhile, the state budget has set the quota for Solar diesel fuel at 7.5 million kilolitres

Source: The Nation Bangkok May 04, 2018 18:00 UTC