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.