City authorities sets new retail price for kerosene
City authorities sets new retail price for kerosene
JAKARTA (JP): The city administration announced on Monday a
maximum retail price for kerosene of Rp 430 (5 U.S. cents) per
liter, an increase of about 25 percent.
Deputy Governor for Administrative Affairs Abdul Kahfi said
the decision was made after a meeting with state-owned oil and
gas company Pertamina, the Ministry of Energy and Mineral
Resources and the Ministry of Industry and Trade earlier in the
day.
"The price increase from Rp 345 to Rp 430 was set in
observation of the current average percentage of fuel price hike
and upon prior discussion with Pertamina," Kahfi told journalists
after signing the gubernatorial decree on the price hike.
The authority for each provincial administration to set its
retail kerosene price is regulated in Law No. 34/1999 on Jakarta
Administration and Law No. 22/1999 on Regional Autonomy.
Gubernatorial Decree No. 2738, dated Oct. 2, 2000, stipulated
that the price hike in the capital took effect immediately on
Monday. Besides the price list set by Pertamina, the hike also
considered transportation fees and profits for distributors.
Chairwoman of the City Economic Development Office Dameria
Saragih said the maximum retail price was set for store owners
who procure kerosene from 267 stations in the capital.
"We expect that the stores will only take profit around 5
percent from the retail price," she said.
Dameria said the consumer should be able to obtain the
kerosene from all retailers at prices below Rp 570.
"We will be very strict, we will close and revoke permits of
any stations that sell kerosene above the set price.
"We will also issue a decree instructing all mayors and
district heads to supervise the price in their respective areas,"
Dameria said.
To control retail kerosene prices for consumers, the City
Administration and Pertamina will effect market controls by
injecting kerosene in the market as soon as there are signs of
extraordinary price increases, she added.
"For the increase, we have to compare the local price with
kerosene prices in West Java province because we could not have
prices much higher than West Java areas to avoid unfair
distribution.
"West Java may have set the price at Rp 435," Dameria said.
The central government announced the fuel hike on Saturday as
the price for Premium gasoline increased to Rp 1,150 (11 U.S.
cents) from Rp 1,000 per liter, automotive diesel fuel to Rp 600
from Rp 550 per liter, kerosene to Rp 350 from Rp 280, and bunker
oil to Rp 400 from Rp 350 per liter.
To anticipate the hike, Pertamina prepared a month supply for
the capital, or a total of 7,600 kiloliters of gasoline, which
consists of premium gasoline, automotive diesel fuel, kerosene
and bunker oil.
Pertamina spokesman Ramli Djaffar said earlier on Sunday that
the company had prepared gasoline stock enough for the next 23
days and kerosene stock for the next 25 days in the capital.
"Pertamina has ensured us that the city will not suffer a
kerosene shortage and they are ready to conduct market operations
through direct supplies to local markets if necessary," Dameria
said. (dja)