Indonesian Political, Business & Finance News

Kerosene prices soar due to scarcity in West Sumatra

| Source: JP

Kerosene prices soar due to scarcity in West Sumatra

Kasparman, The Jakarta Post, Padang

A kerosene scarcity in several regencies of West Sumatra
province has raised the price of the fuel by more than 100
percent, further burdening a public still reeling from recent
increases in the prices of other goods.

The scarcity is mainly affecting the regencies of Agam,
Pasaman, Solok, Sawahlunto Sijunjung and Mentawai island.

Syamsu, a kerosene retailer in Lubuk Basung, Agam regency,
said that he had experienced the scarcity of the fuel at first
hand. He gets his kerosene supply from a wholesaler, who is also
suffering from the shortages.

"It's not every time we want kerosene that we get it.
Sometimes the wholesaler himself runs out. And we have to wait.
But every time we go to the wholesaler we have to spend more
money on transport," he told The Jakarta Post on Wednesday.

He added that the shortage had caused the wholesalers and
retailers to increase their prices by more than 100 percent.
According to Syamsu, the retail price set by the state oil and
gas company Pertamina in West Sumatra is only Rp 765 per liter.

But data from the public relations department of the West
Sumatra administration shows that in Agam's Lebak Basung
subdistrict, the kerosene price has reached more than Rp 1,700
per liter.

In Pasaman, it had reached Rp 1,800 per liter and in Mentawai
island, the fuel was retailing for up to Rp 4,000.

Nofrizon, a resident of Mentawai, told the Post that the
significant rise in the price of kerosene on the island was not
only due to the scarcity, but also the management of Padang sea
port's decision to stop sea transportation to the island due to
the inclement weather.

Usually, the Padang to Mentawai route was served by the Sumber
Rezeki and Meleget ships. But last week, they halted services due
to the weather.

"The Padang harbormaster couldn't authorize sailings to
Mentawai because of the heavy seas," Nofrizon said in Padang.

The increase in the price of kerosene has further hit local
residents following the recent increases in the prices of
gasoline, diesel fuel, telephone, electricity and transportation
charges.

Pertamina's public relations chief Fitri Erika told the press
in Padang that she was unaware of the increase in the kerosene
price. She said that the company only monitored fuel prices up to
the wholesaler level.

"But we haven't found any price increases at the wholesaler
level. If we did find them, we would be able to tackle them," she
explained.

She said that the increase could be due to the fact that the
daily supply of kerosene to the province was set at only 509.5
kiloliters, which was not enough to meet increasing local
demands.

According to the National Development Planning Agency
(Bappenas), the per capita demand for kerosene per month is 3.7
liters.

But the West Sumatra administration had set the figure at only
2.9 liter for every person in the province. "Based on Bappenas
data, 2.9 liters per day is actually not enough," she explained.

She said that Pertamina in Padang was trying to increase the
kerosene supply from the current 509.5 liters to 610 liters per
day. "We've sent a letter to Pertamina Unit I in Medan to ask for
an increase in the supply. But we haven't received any response
yet," she said.

View JSON | Print