Industry News

The Impact of revocation fuel subsidy for merchant fleet

In closer time, government will issues a policy about the retail and consumer prices of fuel that are no longer subsidized. Regarding to the Ocean Week: This revocation will not give impact to this bussiness, because the users of subsidized fuel in shipping sector is predicted arround 5% to 10%. Therefore, it will be little posibility to affect national shipping companies.

Reffering to the dialog between Ocean Week and Carmelita Hartoto (the Chairwoman of INSA), INSA has sent a letter to the Ministry for Energy and Mineral Resources on last January 25, 2012, calling that the subsidized fuel for national merchant fleet is better be revoked except for the passenger ships, pioneered fleet, ferry and traditional shipping fleet. This policy can be done because so far the subsidized fuel for sea transportation sector cant be enjoyed by aroung 5% - 10% fleet.

Carmelita added that the proposal for this policy will not give any efect to tariff hike in domestic service because so far, the consumption of subsidized fuel in commercial shipping is very little. It should be underlined that at present, about 90%-95% of national merchant fleet has no longer used subsidized fuel. Therefore, the impact to tariff hike will be little and maybe we can say as nothing.