Ministry of Transportation Suggested the use of BBG and Vgas

Ministry of Transportation Suggested the use of BBG and Vgas

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The Department of Transportation encourages people to use Gas Fuel (BBG) and Vgas (gas fuel for motor vehicles) because the subsidies are low.

"I have proposed to the Minister of Transportation to encourage the use of BBG and Vgas developed by PT Pertamina," said Director General of Land Transportation of the Ministry of Transportation, Iskandar Abubakar in Surabaya, Wednesday (14/5), after Technical Workers Meeting of East Java DLLAJ Traffic Division.

He said that if Vgas developed, the motor vehicle tax can be nullified, so that positively affect the use of gas, because if gas subsidized the price can be reached by the community.

"I also proposed for BBG vehicles to be exempted from import duty, if it can be realized immediately, because there are already entrepreneurs who meet I want to convert to BBG," he said.

Iskandar said, currently BBG users are still small because only about 2,500 vehicles.

"With the increase in fuel, people will look for the most efficient fuel, namely BBG.In addition, it needs a credit scheme for conversion to BBG, because the price of BBG Rp2.600 per liter and Vgas Rp3.600.If its PKB nil Vgas price will drop so it is interesting to use, "he said.

As for the gas supply that stalled, Iskandar said not the responsibility of the agency.

He said 40% of the fuel subsidy was received by rich people who did not deserve subsidies.

"So, the fuel price hike for the lower welfare of the people, because the government also gives BLT.If the fuel will increase will decrease the use of fuel, this will give positive impact to the reduction of exhaust emissions, so related to` global warming`, "he said.

The second impact of the fuel price hike, he said, is the increasing cost of transportation, especially public transportation.

"Now, if we see public transportation, the fuel component is around 30 to 35 percent, ferry freight can be 40 percent, every 10 percent increase in fuel price will affect the cost of 3 to 3.5 percent," he said.He added that if the pattern of subsidies with BLT, the tariff can be raised.

"So every 10% increase in fuel costs 3.5%, there is another impact of an increase of 0.50% inflation for every 10% increase in fuel," he said. (kpl /

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