Pertamina says fuel problems resolved<\/p>\n
Fitri Wulandari, Jakarta<\/p>\n
State oil and gas firm PT Pertamina said the fuel supply
\nproblems that have been affecting some areas of the country were
\ndue to technical problems rather than low fuel stocks.<\/p>\n
The company gave assurances that national fuel stocks were
\nsufficient and that the supply problems had been resolved.<\/p>\n
\"There is no fuel shortage at present. The latest problem,
\nwhich occurred two weeks ago and affected a few areas, is due to
\ntechnical problems,\" Hanung Budya Yukyanta, the company's
\nspokesman, told The Jakarta Post on Monday.<\/p>\n
Pertamina was commenting on earlier press reports suggesting
\nthat there had been fuel shortages in some parts of the country,
\nsomething that would not only affect economic activities but
\ncould also trigger social unrest, particularly during the current
\nelection period. The reports said that the shortages had occurred
\nbecause of a drop in the national fuel stocks.<\/p>\n
Hanung acknowledged there had been a shortage of automotive
\ndiesel fuel in Jambi province two weeks ago which had been caused
\nby transportation problems and increasing consumption.<\/p>\n
\"The barges that transport the fuel to Jambi were carrying
\nless fuel because the river was shallow during the dry season.
\nAdditionally, people were stocking up on fuel for fear of
\nshortages,\" Hanung said.<\/p>\n
However, Hanung said that supplies to Jambi province were now
\nback to normal.<\/p>\n
Supply disruptions also occurred in Alor, East Nusa Tenggara,
\nwith Pertamina saying that once again transportation problems
\nwere to blame.<\/p>\n
\"But we have dispatched ships to transport more fuel. Now,
\nfuel stocks in Alor are safe for 10 days,\" Hanung added.<\/p>\n
Pertamina acknowledged that national fuel stocks had recently
\ndropped to a low of 19 days but now were back to normal at 22
\ndays.<\/p>\n
\"They are now climbing back to a safe level of 24 days,\"
\nHanung said.<\/p>\n
The drop in the national fuel stocks, Hanung explained, was
\nbecause the company did not have sufficient cash on hand to
\nimport crude and fuel products.<\/p>\n
Hanung said the company needed around US$900 million in cash
\neach month to buy crude and oil-based fuel products. Although
\nIndonesia is also an oil producing country, it still imports some
\nof its fuel needs.<\/p>\n
Pertamina's cash flow problem was partly due to the failure of
\nthe government to reimburse monthly fuel spending undertaken by
\nthe company, Hanung said.<\/p>\n
The government normally makes the reimbursement in the
\nfollowing year after the Supreme Audit Agency audits Pertamina
\nspending.<\/p>\n
But as oil prices have recently surged to record levels of
\naround US$40 per barrel, the company has had to spend much more
\nmoney (the current 2004 state budget assumes an international oil
\nprice of $22 per barrel) for importing fuel products, while
\nselling it here at a lower price in line with the government's
\nsubsidy policy. This has left the company's cash flow at a
\ncritical level of below Rp 2 trillion ($217.39 million).<\/p>\n
Pertamina will retains the right to provide crude and oil-
\nbased fuel products for nationwide consumption until 2005 when a
\nfree market will be applied in the downstream oil and gas sector.<\/p>\n
\"We have asked the Ministry of Finance to immediately
\nreimburse the fuel subsidy funds,\" he said.<\/p>\n
The company and the government had reached an agreement that
\nthe government must reimburse the fuel subsidy funds to Pertamina
\non a monthly basis.<\/p>\n
\"If Pertamina can fix the cash flow problem than we can meet
\nour commitments to our suppliers abroad,\" Hanung said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-says-fuel-problems-resolved-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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