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Fuel Rationing Ahead?

Indonesia Consider Fuel Rationing for Private Vehicles as World Oil Prices Near US$100 a Barrel Mark.

(11/10/2007) The Indonesian Government is reportedly weighing the option of imposing a program of gasoline rationing for private vehicles if global oil prices continue their march to a level in excess of US$100 per barrel.

Such a move, argue many, is made necessary by the increasingly burdensome cost of government-sponsored oil subsidies throwing the State budget badly off kilter. The current allocation for oil subsidies in the 2008 State Budget of US$5 billion was based on a projected US$60 average cost of a barrel of crude oil.

Indonesia an Oil Importer

Although Indonesia is a member of OPEC and a major producer of oil, it's large population, diminishing oil production rates and rapid pace of economic growth means that the Country is a net importer of oil. Approximately 30% of Indonesia's oil needs are now met through imports.

While the details of any proposal to limit the use of gasoline by consumers in Indonesia remains vague, government insiders say that any such plan, if eventually introduced, would affect only private vehicles and not public transport.