Kerosene price to be controlled to prevent intolerable hikes
Kerosene price to be controlled to prevent intolerable hikes
JAKARTA (JP): The city administration will enact on Wednesday
a stringent regulation to prevent any intolerable hikes in the
price of kerosene.
Head of the City Economic Development Office Dameria Saragih
said on Tuesday the ruling will enforce a suspension of supply as
a maximum punishment against any station which sells kerosene
above the new retail price of Rp 430 (5 U.S. cents).
The regulation, a follow-up to the Gubernatorial Decree No.
2738 dated Oct. 2, 2000 on the new kerosene retail price, will be
imposed on 267 kerosene stations across the capital.
"Station owners who violate the ruling will receive a warning
letter issued by the National Federation of Oil and Natural Gas
Entrepreneurs (Hiswana Migas). If the violation continues state
oil company Pertamina will reduce the supply and finally stop it
if the offense persists," Dameria said.
The city administration has also ordered all mayors and
district heads to control all kerosene stations operating in
their respective jurisdiction, she added.
"Before we set the new retail price, we had calculated the
profit for the owners so there are no reasons for them to
increase the price again," Dameria remarked.
She further emphasized that the city administration has also
cooperated with Hiswana Migas and Pertamina in controlling the
kerosene price and supply.
Commenting on the direct dropping operations conducted by
Pertamina at two kerosene stations on Monday, Dameria said the
move was initiated after certain traders tried to benefit from
the absence of a decree on the new retail price.
"Yesterday (on Monday), some stations sold kerosene for
between Rp 600 to Rp 700 per liter because when the new fuel
price took effect we had not yet set the retail price for
kerosene and Pertamina quickly anticipated that," she said.
Pertamina conducted a market operation in the Tambora and
Palmerah areas in West Jakarta on Monday following an
extraordinary hike in kerosene prices there.
Dameria said that to control retail kerosene pricing for
consumers, the city administration and Pertamina will intervene
in the market as soon as there are signs of irregular price
increases.
The city administration will also decide on Wednesday the
maximum increase in pricing for the nine basic needs in Jakarta.
"We will set the tolerable percentage of price hikes at around
the 3 percent limit as stipulated by the Ministry of Trade and
Industry," Dameria said.
These basic needs include rice, sugar, flour, eggs, meat and
chicken.
She hinted that some of the nine basic staple foods will
remain at their current prices, while others will be minimally
increased.
"Based on our market observations, there have been no signs of
increase in the prices of the nine basic needs," Dameria said.
Attending the meeting are officials from the City
Administration Office, the Ministry of Trade and Industry and the
Indonesian Chambers of Commerce and Industry as well as the big
distributors of essential products. (dja)