Fuel Rationing...is (not) an absolutely stupid idea!
What more can you say? State minister for national development planning Paskah Suzetta smilingly announced government's plan on rationing fuel (bahan bakar minyak, BBM) consumption two days ago. I thought he was joking. But no! He said the rationing would be implemented on big cars and government officer's cars. Why? To save energy and to cut significantly fuel import, he said, amid the world's fuel price hike that almost hit US$80 per barrel.
Is it really a stupid idea?
In August 2005, China's most prosperous city of Guangzhou implement the rationing of gasoline and diesel to cope with a fuel shortage. Guangzhou experienced a monthly shortfall of approximately 12,200 barrels per day of oil products that time.
The same month, President Gloria Macapagal-Arroyo in Philippines ordered fuel rationing for vehicles of government offices and warned the public that "forceful and drastic steps may be needed to prevent a worst-case scenario."The plan mandates government agencies to cut down their monthly fuel consumption to 90 percent of their average consumption.
That's exactly what Samarinda City Administration in East Kalimantan did in October 2005 right after central government raise the fuel price by more than 100%. The local administration cut the fuel allocation for its officers fleet from 150 liter/car/month to 100 liter/car/month.
Last month, two of China’s biggest oil suppliers have begun to ration diesel, triggering lorry queues at petrol stations across two of the country’s most prosperous provinces. Such was the demand that the state-run oil giants Sinopec and PetroChina set a limit on customers of 25 to 50 litres a visit. The rationing appears to be restricted to the southeastern provinces of Zhejiang and Jiangsu, two of the most dynamic regional economies in the world’s second-largest oil consumer.
What's the problem with Paskah's proposal?
Well, the implementation. He said the rationing would only apply to cars with engine capacity of more than 2,000 cc. First, the guys at gas stations should be trained to differentiate which cars are above 2,000 cc. Second, even if they managed to differentiate, can they really enforce and not fooling around with the customers for a higher price? Third, almost 90% of cars in Indonesia have engine capacity below 2,000 cc. So it's looks good only on paper just like economist Revrisond Baswir said to Detik.com.
It's not a totally stupid idea though. Probably government could start with rationing the fuel budget for its fleets, just like what the Samarinda Administration did. Officers could still buy gasoline more than the allocated, but they should pay with their own money. Still, we have to think of its impact, say...these officers would be more corrupt...
How about fuel taxes with incremental rate...say if you buy 10 liters the tax is 5%, 10-20 at 10%, 20-30 at 15%, and so forth...With that, we don't have to worry about budget pressure of the increasing oil price...Just like my fellow smokers who are willing to pay 30% of the puffs to the state coffers...even though I'm not sure if the number of smokers reduced recently...
But I do agree with Revrisond to give priority to reducing significantly the chaotic traffic situation in big cities like Jakarta through MRT, monorail, whatever...
Otherwise we live in a really drunken republic (benar-benar mabok/BBM---my favorite comedy show)...full of foolish ideas.
Is it really a stupid idea?
In August 2005, China's most prosperous city of Guangzhou implement the rationing of gasoline and diesel to cope with a fuel shortage. Guangzhou experienced a monthly shortfall of approximately 12,200 barrels per day of oil products that time.
The same month, President Gloria Macapagal-Arroyo in Philippines ordered fuel rationing for vehicles of government offices and warned the public that "forceful and drastic steps may be needed to prevent a worst-case scenario."The plan mandates government agencies to cut down their monthly fuel consumption to 90 percent of their average consumption.
That's exactly what Samarinda City Administration in East Kalimantan did in October 2005 right after central government raise the fuel price by more than 100%. The local administration cut the fuel allocation for its officers fleet from 150 liter/car/month to 100 liter/car/month.
Last month, two of China’s biggest oil suppliers have begun to ration diesel, triggering lorry queues at petrol stations across two of the country’s most prosperous provinces. Such was the demand that the state-run oil giants Sinopec and PetroChina set a limit on customers of 25 to 50 litres a visit. The rationing appears to be restricted to the southeastern provinces of Zhejiang and Jiangsu, two of the most dynamic regional economies in the world’s second-largest oil consumer.
What's the problem with Paskah's proposal?
Well, the implementation. He said the rationing would only apply to cars with engine capacity of more than 2,000 cc. First, the guys at gas stations should be trained to differentiate which cars are above 2,000 cc. Second, even if they managed to differentiate, can they really enforce and not fooling around with the customers for a higher price? Third, almost 90% of cars in Indonesia have engine capacity below 2,000 cc. So it's looks good only on paper just like economist Revrisond Baswir said to Detik.com.
It's not a totally stupid idea though. Probably government could start with rationing the fuel budget for its fleets, just like what the Samarinda Administration did. Officers could still buy gasoline more than the allocated, but they should pay with their own money. Still, we have to think of its impact, say...these officers would be more corrupt...
How about fuel taxes with incremental rate...say if you buy 10 liters the tax is 5%, 10-20 at 10%, 20-30 at 15%, and so forth...With that, we don't have to worry about budget pressure of the increasing oil price...Just like my fellow smokers who are willing to pay 30% of the puffs to the state coffers...even though I'm not sure if the number of smokers reduced recently...
But I do agree with Revrisond to give priority to reducing significantly the chaotic traffic situation in big cities like Jakarta through MRT, monorail, whatever...
Otherwise we live in a really drunken republic (benar-benar mabok/BBM---my favorite comedy show)...full of foolish ideas.
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posted by yosef at 3:36 PM
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