Depots needed to sell kerosene at fixed price

JAKARTA (JP): Councillors called on the city administration on Monday to establish kerosene outlets in cooperation with state- owned oil company Pertamina to provide the oil at a fixed price.

"It's the city administration's moral obligation to keep the price of kerosene low," said councillor Tjuk Sudono of the National Mandate Party (PAN) faction.

"While awaiting the completion of the depots, the city administration should ask Pertamina's Domestic Marketing Unit (UPDN) to hold a special market operation to sell kerosene at the official price," he added.

Tjuk was commenting on reports that kerosene distributors have started to stock their supply before the new price takes effect on April 1. The price is set to rise from Rp 280 (3 US cents) to Rp 350 per liter. Currently, resellers sell kerosene at Rp 500 per liter.

"Organizing a market operation for kerosene will be easier than compared to the one for rice. We produce kerosene daily, unlike rice which needs time to grow and takes time to harvest."

He said any market operation would be a test case for the new Pertamina president, Baihaki Hakim.

"It will be a sign of his commitment to poor residents," he said.

Tjuk, a member of the council's Commission D for development affairs, also questioned why Pertamina didn't impose strict price controls on kerosene, which is used widely by those people on a low income.

"Perhaps it is because Pertamina considers it a minor problem when compared to the distribution of premium gasoline," he said, before adding that kerosene prices had the potential to spark greater social unrest than was currently being estimated.

"Pertamina-controlled fuel stations sell premium at Rp 1000 per liter nationwide. Pertamina should also establish standard- price kerosene stations," he added.

He also said that kerosene prices impacted upon more people than just poor ones.

"Wealthy people sometimes eat at sidewalk eateries whose stoves use kerosene as fuel. The price hike will affect eatery owners too," he said.

Councillor Syarif Zulkarnaen, who chairs the council's Commission B for economic affairs, shared Tjuk's opinion.

"City residents, especially poor ones, use kerosene in a lot of their activities. They must have the opportunity to buy kerosene at a lower price," he said.

Syarif, a member of the United Development Party (PPP) faction, also suggested the government establish stations selling kerosene at the official price, just like premium gasoline.

"This way residents can choose whether to buy kerosene from those stations at cheaper price or from resellers charging a higher price," he said.

"Kerosene stations will at least minimize, if not eliminate, the possibilities of price speculation," he added. (nvn)