Kerosene prices soar on shortages in Tegal

Kerosene prices soar on shortages in Tegal

Nana Rukmana, The Jakarta Post, Tegal

Residents of Tegal regency, Central Java, have been complaining
about kerosene shortages since the start of the Ramadhan fasting
month on Friday.

Due to the scarcity, kerosene is being sold for between Rp
1,200 and Rp 1,300 per liter in shops across the regency. Its
government-set price is only between Rp 875 and Rp 900 per liter.

Owners of several kerosene stations said they had received
less supplies than normal from state owned oil and gas company PT
Pertamina since last week.

"For almost a week, Pertamina has cut kerosene supplies to
retailers," said Triono, who owns a kerosene depot in Kemantren
village, Kramat.

He said the company had cut his regular supplies by up to half
of normal amounts.

"Previously, Pertamina provided a kerosene supply of 5,000
liters to every depot a week," Triono said.

He said he was forced to ration the sales of kerosene to local
residents for household purposes only. "Every buyer gets a
maximum of only 10 liters. We do so in order to distribute
kerosene equally."

Women were lining up in long queues at other kerosene depots
to buy the cooking fuel.

"I've queued at here since 8:30 a.m. to obtain kerosene for
official prices set by the government," Sukinah, a mother of
Kemantren village, Tegal, said.

If she bought kerosene from retail vendors, she had to spend
between Rp 1,200 and Rp 1,300 per liter. "The prices are far
different from those offered by kerosene depots, where it is sold
for only Rp 900 per liter," Sukinah said.

Triono said thousands of people were in long queues every day
in almost all kerosene depots throughout Tegal.

"Most households in Tegal are dependent on kerosene for their
cooking fuel," he said.

Triono said the soaring retail prices of kerosene were a part
of a price fixing conspiracy between some retailers for profit.

"I think some depot owners are not serving consumers but
instead sell kerosene to retailers on higher prices per liter.
They do so, because depots are prohibited by Pertamina from
increasing the retail prices from the normal Rp 900 per liter,"
he said.

He said Pertamina would impose sanctions on retailers found
selling kerosene beyond the normal price.