Pertamina plans to cut the amount of subsidised diesel and gasoline available at petrol stations starting next month to ensure Indonesia’s state-owned energy firm doesn’t surpass its fuel quota for the year, a company official said.

Pertamina will provide 20 percent less subsidised diesel and 10 percent less gasoline to its fuel stations throughout Indonesia to make sure it abides by the government’s allocated quota of 45.35 million kilolitres this year.

Fuel subsidies, which the government argues largely benefit the rich, cost it around US$20 billion a year, putting pressure on the current account deficit.

“Besides cutting the fuel quota in every fuel station, we also plan not to sell subsidised gasoline at toll roads,” said Hanung Budya, Pertamina’s director of marketing.

He said the company would reach its diesel quota by November 30, and its gasoline quota by Dec 19 if it did not take action next month.

The energy ministry will have to pass a regulation in the next few weeks to enable Pertamina to cut the amount of subsidised fuel at petrol stations, Budya said.

- Reuters