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Kerosene scarcity worsens, govt responds with 400 posts

| Source: JP

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.

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