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.