Price, supply problems cause diesel scarcity<\/p>\n
JAKARTA (JP): The scarcity of diesel fuel over the past month
\nis the result of price disparities, and an agreement between the
\ngovernment and the House of Representatives to reduce this year's
\nsupply, the state-owned oil and gas company Pertamina said.<\/p>\n
The company's distribution general manager for Greater
\nJakarta, West Java and Banten (PPDN III unit), Sumarsono, told
\nthe press here on Tuesday that diesel, which was the cheapest
\nfuel, was sold to the general public at Rp 900 (US$0.11), while
\nto industry the price charged was Rp 955.<\/p>\n
He said that earlier this year the government and the House of
\nRepresentatives had agreed that Pertamina would only be allowed
\nto sell some 52.7 million kiloliters of fuel, a decrease of 3.6
\npercent from last year's figure of 54.6 million kiloliters.<\/p>\n
\"This target is hard to realize as the demand for fuel is
\ncontinuing to increase,\" he said.<\/p>\n
He cited as an example the company's PPDN III unit which had
\ntargeted diesel sales of 4,552,013 kiloliters this year. But
\nduring the last eight months sales had already reached 3,491,438
\nkiloliters or 76.7 percent of the targeted figure.<\/p>\n
But during a hearing with Pertamina, the House members argued
\nthe national target was sufficient to cover demand throughout the
\ncountry if Pertamina could tackle the problem of distribution.<\/p>\n
Sumarsono also said that certain traders also mixed the diesel
\nfuel with gasoline and they sold it as gasoline, which was more
\nexpensive than diesel. \"This also affects the diesel supply,\" he
\nsaid.<\/p>\n
\"There are also weaknesses in the distribution chain. When
\ndiesel is being transported by our private contractors to gas
\nstations or to industrial sites, somewhere along the way some of
\nthe diesel goes missing,\" said Sumarsono.<\/p>\n
He added that Pertamina and the relevant government
\ninstitutions had formed a joint gasoline misuse supervision team
\nto investigate fuel distribution problems.<\/p>\n
The team comprised elements from the police, the Jakarta
\nadministration, the Ministry of Transportation and the Attorney
\nGeneral's Office.<\/p>\n
When asked by reporters whether this method was effective
\ngiven that the diesel scarcity was continuing, Sumarsono said
\nthere had been some fuel thieves who had been brought to court.
\nHowever, he said, it was beyond Pertamina's authority to pursue
\nthe matter further.<\/p>\n
\"We will continue to coordinate with the other institutions,\"
\nSumarsono said without giving any further details as to how it
\nwould deal with the gasoline thieves.<\/p>\n
In response to the ongoing diesel shortage, Pertamina and the
\ncompany's Directorate General of Mines and Energy were currently
\nre-evaluating national fuel demand.<\/p>\n
\"There's a possibility of adding to the diesel supply after
\nthe review,\" Alwi Adil, a Pertamina spokesman, said.<\/p>\n
Sumarsono said that on Aug. 31, the supply of diesel to
\nGreater Jakarta had been increased to 1,710 kiloliters, of which
\n600 kiloliters had been allocated to Muara Baru in North Jakarta.
\n(06\/bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/price-supply-problems-cause-diesel-scarcity-1447893297",
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