Fuel stock up, still below safe level

Fuel stock up, still below safe level

Muninggar Sri Saraswati and Leony Aurora, The Jakarta Post, Jakarta

State oil and gas firm PT Pertamina found a little breathing room
on Wednesday as pumps unloaded imported fuel from tankers,
slightly increasing domestic fuel stockpiles to 18 days supply,
from Monday's 17.5 days, but still below the safe 22-day reserve
level.

Premium gasoline stocks rose to 14 days of reserves from a
critical level of 12.7 days, while diesel fuel went up slightly
from 14.5 days to 15 days, Pertamina's fuel division head Achmad
Faisal said on Wednesday.

"There are three vessels in Semangka Bay (in Lampung) with
some 1.8 million barrels of Premium and diesel fuels being
unloaded," he said.

Some 200,000 barrels of Premium gasoline, imported from China,
had also arrived in Jakarta, he said.

"When all of the fuel has been unloaded, the stocks will be
enough for 18 days reserves (nationwide)," Faisal said. "Premium
stocks in Jakarta are enough for seven days."

He did not provide details on other areas.

Motorists have been lining up in many gas stations in smaller
cities in Java and other islands during the past few days after
Pertamina's lack of cash flow prevented it from importing
sufficient petroleum products into the country.

The fuel shortage and the continuing high international cost
of oil has prompted Vice President Jusuf Kalla to announce that
the government would soon draft a regulation to limit the public
use of fuel and electricity.

He said with the current high public consumption of fuel, the
government might have to increase allocations for fuel subsidies
from the initial plan of some Rp 70 trillion (US$7.28 billion) to
about Rp 110 trillion this year.

"The government can not afford to allocate more money for
subsidies of fuel. Therefore, we will enforce limits on the use
of fuel by issuing a special regulation," Kalla said at his
office.

The regulation could include limits on the operation of
energy-hungry air conditioners and restrictions on private car
use to cut energy demand, as well as other cost-cutting measures
adopted by countries like Singapore, Malaysia and Japan, he said.

Pertamina said that until May, Premium usage in the country
had already exceeded its supply quota by 10 percent. "Diesel fuel
has surpassed its quota by 4 percent," Faisal said.

When asked whether the government was likely to inject fresh
capital into Pertamina to help revitalize the company, Kalla said
that such a plan had never been considered, since the company
would need some Rp 19 trillion to ensure its fuel stocks.

"There is no other way for Pertamina but to boost efficiency.
The public should also start reducing their fuel and power
consumption immediately," he said.

Not only motorists, but also State electricity firm PT PLN has
to wait in line to get diesel fuel for its power plants that
supply the Java-Bali grid.

Several areas in the two islands experienced blackouts on
Monday as the 840-megawatt Grati power plant in Pasuruan, East
Java, shut down temporarily due to the shortage.

General manager of PLN's Java-Bali power distribution Center
Muljo Adji said that fuel supplies for Grati, the 1,000-MW Tambak
Lorok power plant in Semarang and the 100-MW Gili Manuk power
plant in Bali for the following week had been secured.

"However, Muara Tawar power plant has only enough fuel to last
until Friday evening, while the tanker bringing the supply is
scheduled to arrive on Friday morning," he said, referring to the
840-MW power plant in Jakarta.

"If the vessel arrives late, we'll have to shut down the power
plant," he said.

Despite its status as an oil producer, Indonesia has to import
300,000 barrels of crude oil a day and 400,000 barrels of fuel
products a day to meet increasing domestic demand.