11 people arrested for hoarding fuel<\/p>\n
Oyos Saroso, The Jakarta Post, Bandarlampung<\/p>\n
Lampung Police Headquarters detained on Saturday 11 people for
\nalleged fuel hoarding.<\/p>\n
Lampung Police chief Brig. Gen. Rasyid Ridho said the suspects
\nhad been caught red-handed buying massive volumes of fuel from
\nseveral gas stations in Bandarlampung city.<\/p>\n
From them, the police confiscated in total 6,700 liters of
\nkerosene, 16,670 liters of diesel fuel, 10,700 liters of premium
\ngasoline and seven trucks. \"We are still investigating the nature
\nof their activities,\" said the one-star police general.<\/p>\n
It has become common for irresponsible parties to buy
\nsubsidized retail fuel in large volumes from gas stations and
\nfuel traders, with the intention of selling it later on for
\nindustrial use. Industries buy fuel from these agents as they
\noffer them better prices than those set by state oil and gas
\ncompany PT Pertamina, which are higher than retail prices.<\/p>\n
Although the practice is illegal it continues to thrive. Fuel
\nis often smuggled to industries in Singapore or other neighboring
\ncountries, which are prepared to pay a higher price.<\/p>\n
The arrest of the 11 people came after the Indonesian
\nConsumers Association (YLKI) publicly stated recently in
\nBandarlampung that many industries in the province have bought
\nfuel intended for retail and household use.<\/p>\n
According to the YLKI, the practice has led to fuel scarcities
\nin the province, depriving the public.<\/p>\n
Shortages occur after industries buy up retail-priced
\nkerosene, for example, causing the price of kerosene to soar.
\nLikewise, \"hoarders\" may buy the entire available supply of
\ndiesel fuel from an area's gas stations and diesel traders,
\ncausing the price of the fuel to skyrocket. The hoarders then
\nsell the diesel fuel to industries.<\/p>\n
According to data from Pertamina Lampung, only 22 companies
\nhave so far purchased fuel directly from Pertamina, while there
\nare hundreds of industries in the province. The other companies
\nallegedly buy their fuel from illegal suppliers.<\/p>",
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