Indonesian Political, Business & Finance News

Bahlil: Fuel Scarcity in Makassar Has Been Resolved

| Source: ANTARA_ID Translated from Indonesian | Energy
Bahlil: Fuel Scarcity in Makassar Has Been Resolved
Image: ANTARA_ID

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that the issue of fuel scarcity that recently occurred in Makassar, South Sulawesi, has been resolved and supply conditions are once again stable.

“What happened yesterday in Makassar, alhamdulillah, has been resolved and completed, and I have reported this to the President,” Bahlil said at the Presidential Palace Complex in Jakarta on Thursday.

Bahlil noted that national fuel stocks remain in a secure condition. The government has established a minimum standard for national requirements at approximately 18 to 20 days.

According to him, one of the factors causing fuel queues in Makassar was a shift in consumption from non-subsidised fuel to subsidised fuel. This shift occurred alongside the rise in global oil prices, which are currently above US$100 per barrel.

“We know that the global price is not in a good condition right now. It has reached over 100 US dollars per barrel. This certainly impacts national prices, as we have not increased our subsidised prices,” he explained.

This situation, Bahlil continued, led some members of the public who previously used non-subsidised fuel to switch to subsidised fuel.

Additionally, Bahlil mentioned findings by the police regarding suspected excessive use of subsidised fuel, which also contributed to longer queues at several locations. He stated that there were vehicles that had been modified or possessed very large tank capacities, reaching up to 700 litres or even 1 tonne, to collect fuel.

Bahlil conveyed that President Prabowo Subianto has directed that these issues be regulated immediately. The government continues to coordinate with PT Pertamina (Persero) as the party responsible for implementing fuel policies on the ground.

“The direction is that we must regulate this immediately. Because we know that the government acts as the regulator, while the implementation on the ground is handled by Pertamina. Therefore, I am in continuous coordination with Pertamina,” said Bahlil.

He also reminded members of the public who are economically capable not to use subsidised fuel, as it is intended for the groups of society entitled to receive it.

“Our brothers and sisters who are capable, who drive nice cars, please, this subsidy is for our brothers and sisters who are entitled to receive it,” Bahlil concluded.

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