Indonesia expands subsidised fuel quota amid high demand

A worker of a petrol station of the state-owned company Pertamina fills a motorcycle with subsidised fuel after the announcement of a fuel price hike, in Bekasi, on the outskirts of Jakarta, Indonesia, September 3, 2022. REUTERS/Ajeng Dinar Ulfiana/File Photo

JAKARTA, Oct 4 (Reuters) - Indonesia has expanded the quota of subsidised 90-octane gasoline by 6.86 million kilolitres (KL) and the quota of subsidised diesel fuel by 2.73 million KL, downstream regulator BPH Migas said in a statement on Monday.

The additional quota would be added to the current volume allocation of 23.05 million KL for the gasoline, known as Pertalite, and 15.1 million KL for subsidised diesel, BPH Migas said.

"With the improving economic conditions post COVID-19, fuel consumption for both diesel fuel and Pertalite has increased, so that if the quotas were not expanded, they will run out by mid-October for Pertalite, and in mid-November for the diesel fuel," BPH Migas chief Erika Retnowati said in the statement.

The additional quotas would be distributed immediately.

Indonesia raised subsidised fuel prices by about 30% in early September, as the government moved to rein in ballooning subsidies. read more

Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy Editing by Ed Davies

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