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Fuel vendors get competition

| Source: JP

Fuel vendors get competition

Hasrul, The Jakarta Post, Kendari

"Gasoline, gasoline,!" Rahmat shouted to motorists on Jl. Ahmad
Yani in Kendari, Southeast Sulawesi. Dozens of bottles, each
containing one liter of gasoline, lined the shelves of his kiosk,
ready to be sold for Rp 3,000 (approximately 30 US cents) a
bottle.

From time to time Rahmat takes a look inside the two large
cans from which he fills the smaller bottles. Rahmat said he had
been selling gasoline at the location for the past two weeks. He
used to work as a laborer at Kendari Port.

"Selling gasoline is much better than lugging sacks at the
port," he said. Rahmat can make a profit of up to Rp 40,000 per
jerry can of gasoline on a good day. "I have two large cans, and
they are usually sold out before 10 p.m."

Rahmat is just one of many first-time fuel vendors trying to
benefit from skyrocketing fuel prices in Kendari over the past
few weeks.

"There were only 30 vendors registered at the seven gas
stations in Kendari in 2004, and that number has now reached
700," said Jon, a fuel vendor in the Andonohu subdistrict of the
city. Jon, a former coordinator for fuel vendors in Kendari,
expressed concern about all the new fuel sellers in the city.

It is easy to see why people are lured to the business.
Retailers can earn a profit of Rp 50,000 from a 35-liter can of
gasoline.

Premium gas, for example, usually sells for Rp 3,000 a liter
in Kendari, compared to the listed price of Rp 2,400 a liter, and
can reach Rp 4,000 to Rp 5,000 on the outskirts of town.

The rising number of people working as fuel vendor has
prompted fuel stations to limit their sales to vendors to two
large 35-liter cans. This limit is in line with Municipal Decree
No. 12/2005. The decree states, among other items, that fuel
vendors can purchase fuel at gas stations only after 6 p.m., and
that they must sell that fuel at least one kilometer from the gas
station.

Despite the fuel shortages in the city, the head of the
Pertamina depot in Kendari, Slamet Sudibyo, claimed that the
supply of Premium gas in the city was stable. According to
Slamet, the shortages are the result of market panic caused by
rumors of deficient fuel stocks in the months to come.

"People should not be anxious because our fuel stock in
Kendari is sufficient," said Slamet.

Slamet also said that gas stations were serving the hundreds
of fuel vendors first, making it more difficult for motorists to
get gas.

According to the municipal degree, gas stations should
prioritize motorists. "If everyone obeyed the rules, there would
not be long lines at gas stations. In addition, gas stations must
limit their supplies to fuel vendors," said Slamet.

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