Biofuel, subsidy cuts reduce Indonesian diesel imports.

摘要

Indonesian diesel imports are expected to fall by about a third in 2014, with reduced subsidies expected to weigh on demand while rising biodiesel blending requirements displace additional volumes. Reduced industrial demand was also a factor, according to Wood Mackenzie. "We see a decline in diesel demand due to several factors—a slowdown in the mining sector, higher use of biodiesel and the retail price hike made in 2013," said Suresh Sivanandam, an analyst with the consultancy. In mid-2013, the government increased the price of diesel by 20%—a move that analysts said brought demand growth to a dead stop—and officials are said to be planning a repeat performance in the near future. Meanwhile, the country continues to blend higher proportions of biodiesel, chipping away at diesel demand even though experts say the country is unlikely to hit its 2014 blending target set at the beginning of the year.