Pertamina Expects “Premium” Gasoline Consumption to Decline 11% in 2016

Government’s state energy company, Pertamina, expects its Premium gasoline consumption to decline by 11 percent to 25 million kiloliters, or 157 million barrels, in 2016 from an estimated 28 million kiloliters in 2015.

“Premium” gasoline a gasoline type made by Pertamina. It is rated at 88 RON and being subsidized it cost about Rp 7,400/liter. Meanwhile for subsidized diesel, the price is set at Rp 6,900 per liter.

Pertamina want to increase sales of unsubsidized RON90 Pertalite gasoline to 2.5 million kiloliters in 2016, from a target of 300,000 kiloliters this year. The company claimed that they got large losses from its fuel business after selling the popular Premium gasoline below the current market price.

Earlier November, the company said Indonesia’s RON88 consumption had declined by 13 percent this year.