Fri, 16 Sep 2005

54 arrested for hoarding 317 tons of fuel

Abdul Khalik, The Jakarta Post, Jakarta

Jakarta Police announced on Wednesday that they have arrested 54 people for hoarding a total amount of 317 tons of fuel in the past two months.

Jakarta Police Special Crimes Unit deputy chief Adj. Comr. Agung Sabar Santoso said that police confiscated two tons of premium, 154 tons of diesel, 73 tons of kerosene and 85 tons of other kinds of fuel in two months of operations.

"We have worked with Pertamina and the city administration and arrested 54 people in 54 cases of fuel hoarding. We also confiscated 317 tons of fuel as a result of those cases," he said.

Agung added that fuel hoarding is so widespread in the capital that police found the suspects operating in almost every corner of the city.

He said that the suspects were detained at the Jakarta Police Headquarters while the fuel was held to be used as evidence in court.

Most of the suspects were arrested for holding, transporting, and trading fuel without permits while several others were arrested for tampering with meters at their respective gasoline stations.

They would all be charged under Articles 23, 54, and 55 of Law No. 22/2001 on oil and gas that carries a maximum punishment of six years imprisonment.

City Police spokesman Sr. Comr. Tjiptono said that the arrests partly explained why in several areas in the Greater Jakarta area fuel, especially kerosene, was hard to find.

"We will try to seek the severest punishment possible for these suspects as in difficult times like these they are taking advantage of people in the lower-income bracket who depend on kerosene," he told The Jakarta Post.

Many housewives have complained about the increase in kerosene prices in their area.

Sulistyaningsih, 37, a resident of Depok, West Java, for instance, could not understand why she had to pay Rp 1,200 (US$12 cents) per liter for kerosene while several months ago it was just Rp 800.

"My husband's salary is only Rp 1.2 million. Every day I use kerosene for cooking. Life is getting tougher with the kerosene price increase. I don't know what the government is doing," she told the Post.

The government sets the price of kerosene for households at Rp 700 per liter, while it sets the price at Rp 2,200 per liter for industry.

Agung said that the high price margin induces many agents to sell their kerosene to industries, making it difficult for ordinary people to find kerosene.

"We will continue to conduct similar operations as we suspect that many other agents are violating the regulation. We hope that the massive arrests will make them think twice about violating the law," he said.