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