Indonesia Restricts Retail Fuel Supply

In an announcement sent to petrol stations around the capital and several other cities, Pertamina has limited retail purchases of fuel and diesel fuel to 75,000 rupiah (S$11) for private cars. Subsidised fuel costs 4,500 rupiah per litre and diesel 4,300 rupiah.

Pertamina vice-president Djaelani Sutomo told local media the move aimed to prevent hoarding ahead of the price hike.  'We are doing this to control consumption, which has jumped significantly since the government announced its plan to raise domestic fuel price,' he said.

Indonesia announced its intention to raise fuel prices last week, with the rising global cost of oil forcing the country to spend increasing amounts on its multi-billion-dollar subsidy scheme.

The administration of President Susilo Bambang Yudhoyono says the move is essential to cut back the ballooning cost of the subsidies, which outstrips spending on social programmes and infrastructure.