Fuel prices remain high in N. Sulawesi

MANADO, North Sulawesi: Fuel prices, in particular for kerosene, remain high in North Sulawesi despite efforts by state- owned oil and gas company PT Pertamina to directly supply 27 distributors based on their areas of operation from Oct. 1.

Pertamina supplies a total of 420,000 liters of kerosene to Minahasa, Bitung and Bolaang Mongondow regencies through distributors, who are expected to control the price.

Pertamina sets the price of kerosene at Rp 500 per liter, while the market price is between Rp 700 and Rp 1,000 per liter.

Locals have said the direct supply system benefits the distributors, who reportedly sell kerosene much higher than the price set by Pertamina.

The head of the Pertamina office in Manado, Muh. Zaini, said that direct distribution was aimed at helping consumers with stable fuel prices.

"In this way each distributor is responsible for meeting the demand of kerosene in its subdistrict. The distributor is responsible for the disappearance and the uncontrolled price of kerosene in the district. And if we impose strict measures on a distributor, that plays a role in creating kerosene scarcity," said Zaini. --Antara