Indonesian Political, Business & Finance News

Gasoline sells at Rp 7,500 per liter

| Source: JP

Gasoline sells at Rp 7,500 per liter

Yemris Fointuna, Kupang

The fuel scarcity continued on Thursday in East Nusa Tenggara
(NTT), pushing the price of premium gasoline to as much as Rp
7,500 (US$0.8) per liter in several parts of the province.

Motorists in Alor and North Central Timor regencies said they
bought premium gasoline at Rp 7,500 per liter, a sharp increase
from the Rp 2,500 over the last few days.

The scarcity was blamed on a lack of fuel supplies at gas
stations that started a week ago.

Hundreds of vehicles in the two regencies had to line up for
hours to obtain gasoline from a number of gas stations there.

"We had to queue for hours to obtain premium. As a result, our
income has been reduced by up to 50 percent," said Anthon Fallo,
a city transportation vehicle driver, at the Kefamenanu gas
station in North Central Timor.

An official at the gas station acknowledged that stocks of
premium gasoline had decreased over the last week due to a lack
of supply from depots of state oil and gas firm Pertamina in the
provincial capital, Kupang.

The gasoline shortage has threatened to disrupt land
transportation in Alor and North Central Timor, damaging the
local economy there.

Alor Regent Ans Takapaleta said his administration had
coordinated with Pertamina to resolve the problem.

He said he was told that the scarcity was due to the delayed
arrival of a tanker to supply the regency.

There has as yet been no official explanation from Pertamina
about the fuel shortage.

However, Kupang-based Pertamina head Mamet P. Oetomo claimed
on Tuesday that fuel stocks were still sufficient for East Nusa
Tenggara. He did not elaborate.

Apart from premium gasoline, kerosene has also become scarce
in Alor and North Central Timor, particularly the more remote
parts, since last Monday.

Kerosene was sold there at up to Rp 2,500 per liter, while
normally its retail price is only Rp 1,000 per liter. The cause
of the kerosene scarcity remains a mystery.

Mamet said on Tuesday the current kerosene shortage was due to
Pertamina's policy of tightening up the distribution mechanism in
East Nusa Tenggara.

According to the policy, retailers were only allowed to buy a
limited quantity of kerosene from licensed and registered
distributors, he added.

"Retailers can sell only kerosene for household use. The
shortage may have occurred because they are stockpiling it to
maximize their profits," he added.

Pertamina has set the price of kerosene for household use much
lower than that for industrial purposes.

Mamet said the price of domestic kerosene was established
nationally at only Rp 700 per liter, and Rp 1,800 per liter for
industrial purposes.

However, the East Nusa Tenggara governor has decided that
kerosene be sold at Rp 950 per liter in the province for
household use, while retailers buy it at Rp 870 per liter from
agents.

The Kupang Police and Pertamina have set up a joint team to
investigate what may have caused the fuel shortage.

The team was trying to verify reports of "sabotage" by
retailers, brokers or certain Pertamina officials, who had
allegedly sold kerosene to businesses to earn a larger profit.

Kupang Police chief Adj. Sr. Comr. Agus Nugroho pledged to
take firm action against anyone found guilty of sabotage.

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