Kerosene scarce in East Nusa Tenggara again

Yemris Fointuna, Kupang

People in East Nusa Tenggara are again facing a kerosene shortage, as traders have allegedly sold the flammable oil to industries to earn more profit.

It was less than a month ago that the province experienced similar problems, prompting the price of kerosene to increase sharply.

However, state oil and gas company Pertamina said on Tuesday the current kerosene shortage was due to its policy of tightening the distribution mechanism in East Nusa Tenggara.

Pertamina's Kupang office head Mamet P. Oetomo said that, according to its policy, retailers were only allowed to buy a limited quantity of kerosene from licensed and registered distributors.

"Retailers can only sell kerosene for household use. The shortage may have occurred because they are stockpiling it to increase their profits," he added.

Pertamina sets the kerosene price for household use much lower than that for industrial purposes.

Mamet said the price of kerosene for household use was set nationally at only Rp 700 (US$0.07) per liter and Rp 1,800 per liter for industrial purposes.

However, due to a decision made by the East Nusa Tenggara governor, kerosene is sold for Rp 950 per liter in the province for household use, while retailers buy it for Rp 870 per liter from agents.

In traditional markets and local shops in the provincial capital of Kupang, the retail price of kerosene has increased to between Rp 1,500 and 2,000 per liter due to its scarcity.

Earlier last week, before the shortage, kerosene was sold for between Rp 1,100 and Rp 1,200 per liter there.

The fuel has been hard to find in Kupang and other towns across East Nusa Tenggara, local residents admitted.

"The shortage was apparent two days ago. Perhaps, it's part of a sabotage attempt ahead of the July 5 election by certain distribution companies or smaller distributors," said Yerison Ndaumanu, a resident from Naikoten I neighborhood in Kupang.

Several distribution firms blamed the scarcity on the implementation of Bylaw No. 13/2003 that limits the distribution of kerosene.

Under the bylaw, distribution companies are not allowed to directly supply kerosene to retailers.

"In the past, distribution companies could provide fuel directly to retailers. Now the retailers have to buy it from brokers, which has caused the shortage and the price rise," said Mery, an employee of private distribution company PT Sulungbudi in Kupang.