VIVAnews - The government suggested that the biofuel subsidy is channelled to state oil and gas company PT Pertamina, the fuel distributor.
"It is better to entrust the biofuel subsidy to Pertamina so that they can control it," said Minister of Energy and Mineral Resources Purnomo Yusgiantoro in Jakarta on Wednesday, April 22.
He said that the biofuel subsidy of Rp 1,000 per liter would be flexible. If the biofuel price rate is lower than the fuel's, the biofuel will receive subsidy. On the contrary, if the biofuel price is higher than the fuel price's, there will not be any subsidy.
In 2009, it is planned that biopremium (bio-premium) will take one percent of the total premium fuel of 206 thousand kiloliters, while biosolar will take five percent of total diesel fuel of 625 thousand kiloliters.
There will also be a proposal to acquire Rp 831 billion for biofuel from the 2009 Revised State Budget.
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Translated by: Ariyantri E. Tarman
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