Kerosene distribution watched

Dyah Apsari, The Jakarta Post, Jakarta

A recent survey by the Central Statistics Agency (BPS) on excess demand for kerosene in Jakarta and reports on fuel hoarding have put the city's kerosene distribution agents in the hot seat.

The agents, grouped in the Jakarta branch of the Association of National Oil and Gas Entrepreneurs (Hiswana Migas), rejected allegations that they were responsible on kerosene shortages in the capital.

"We have created a new mechanism to monitor the distribution of kerosene in Jakarta to make sure that there will be no hoarding of fuel," said the association's spokesman, Sofyan Z. Zakaria, at a press conference over the weekend.

The BPS survey, conducted between June and July, shows that the consumption of subsidized kerosene in the capital stands at about 83,000 liters per month.

Last year, in order to prevent kerosene hoarding, the Jakarta administration issued a regulation stipulating that the kerosene supply should not exceed the capital's monthly demand of 60,000 liters.

Sofyan argued that the regulation had yet to be enforced and that real kerosene consumption had reached 83,000 liters per month due to the presence of at least 600,000 small businesses in the form of kiosks and street food stalls.

"The consumption of kerosene is of course higher than in other cities, but this does not mean that there is kerosene hoarding and smuggling going on," he said.

Sofyan explained that the association would take part in a new surveillance system set up by the city administration, and which will be implemented in early 2006.

Under the system, two supervisors will provide daily reports via text message to subdistrict officials.

The subdistrict officials will then fax weekly reports to the Jakarta Economic Development Bureau and Hiswana Migas.

The two institutions will then analyze the reports and forward them to the governor and Pertamina.

"Hopefully this tight monitoring regime will stabilize the kerosene distribution and supply situation in the capital. However, the system doesn't extend down to the retailers, so we'll paint their carts different colors to prevent any of them selling kerosene outside their own areas," added Sofyan.