Indonesian Political, Business & Finance News

Jambi hit by gasoline shortage

| Source: J

Jambi hit by gasoline shortage

Jon Afrizal, Jambi

Vendors in Jambi city have been forced to gradually raise prices during the past two weeks due to the scarcity of premium grade gasoline in the province.

Shortages of gasoline in other towns in the region -- Sengeti, Tembesi, Bangko and Bungo -- have caused panic buying from fuel vendors who are forming long queues at gas stations.

Information gathered on Monday by The Jakarta Post indicated the shortage was caused by a lack of Pertamina tankers, which transport the fuel from neighboring Palembang in South Sumatra to Jambi.

The state oil company has attempted to solve the problem by transporting fuel overland from other destinations to meet Jambi's daily demand of 400 kiloliters but as of Monday people were still queuing to buy the gasoline.

The Post observed long queues from 7 a.m. to 10 p.m. when vendors vied with motorists to buy the fuel. Vendors could only buy two 10-liter jerrycans of gasoline at a time.

The queues, which sometimes spilled into the nearby streets of Jl. Arief Rahman Hakim and Jl. Kolonel Abunjani, interrupted traffic.

One vendor, Kamaruddin, who was waiting in a queue at the Jl. Arief Rahman Hakim gas station in Jambi, said locals were upset at the shortage, which had forced gas stations to limit sales to 40 liters of gasoline per person a day.

He said he had to raise the price of fuel he sold as it was difficult to get an adequate supply.

"I now have to sell a liter of gasoline, which I buy at the station for Rp 1,810, for Rp 2,200. I normally never sell gasoline above Rp 2,000 a liter," he told the Post.

Gasoline prices are not regulated at the vendor level and some were selling premium gasoline at up to Rp 2,500 a liter.

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