Mon, 06 Jun 2005

Kerosene scarcity worsens, govt responds with 400 posts

Nana Rukmana, The Jakarta Post, Indramayu

The Indramayu regency administration is planning to set up at least 400 kerosene distribution posts to deal with the widespread kerosene scarcity in the West Java region over the last two weeks, an official said.

The scarcity has pushed kerosene prices up to Rp 1,500 per liter (16 U.S. cents) in the main part of town, and Rp 1,700 to Rp 1,800 per liter in more remote areas -- much more than the government's set retail price of Rp 875 per liter.

Head of Indramayu regency's Trade and Industry Office, Syahri Tohir, said the new kerosene distribution posts would be added to the current 186 posts already up and running across the regency.

"The new kerosene posts are expected to be able to solve distribution problem, the main cause of the kerosene scarcity," he promised.

The new kerosene distribution posts, he added, would be built in 28 districts.

The scarcity has occurred, according to administration officials, in most of the regency, even at Karangampel district, which is located adjacent to the Balongan oil refinery. The worst-hit areas include Jatibarang, Sukra, Lohbener and Sindang districts.

Currently, to deal with kerosene scarcity, the trade and industry office as well as private oil and gas business association in Indramayu have commenced direct selling of kerosene.

Some 59 trucks with a capacity of 5,000 liters of kerosene each have been deployed to areas which face kerosene shortage.

"We have distributed 295,000 liters of kerosene for the program. The kerosene is sold at Rp 875 per liter," Syahri said.

Despite suspicion that there is rampant corruption, hoarding and smuggling of kerosene, he claimed the scarcity was not because of a lack of supply from state oil company PT Pertamina, but due to the poor distribution and trade system set up by Indramayu regency officials.

He added that under the Indramayu system, kerosene was limited by cutting down the number of kerosene agents. The supply was also limited, based on the number of residents in each area.

"The new regulation no longer allows us to supply kerosene to drums in shops or stalls. The cut on the number of agents was apparently intended to control and maintain a lower kerosene price. But in reality, the marketing network in every district, village or subdistrict are ill-prepared for shortages, causing the price to escalate," Syahri said.

Now, in the last two weeks, the residents have had to wait in long lines to get rationed kerosene.

Aminudin, a kerosene agent in Karanganyar, admitted that he found it hard to adjust to the new system.

"Now, we get less supply than before. These days we only receive 30,000 liters per week, while previously, we received 5,000 liters per day. Of course that's not enough for the residents," Aminudin said.

Dealing the scarcity, he has to make sure everyone gets a similar share of kerosene. "I set five liters per family per day. If I don't do it, many residents will not get a share of kerosene," he said.

A Lohbener resident, Mahmudi, complained that he has to wait for long time to get kerosene and could only buy a limited amount. "And we have to pay expensive prices to get less of it," the 42-year-old said.