No problems on gasoline stock, says Pertamina
JAKARTA (JP): State-owned oil company PT Pertamina has beefed up its stock of gasoline around the capital in case of panic buying ahead of a 12 percent increase in prices next month.
With the additional stock, Pertamina will be ready to deal with potential shortages ahead of, or after the price hike, which is scheduled for Oct. 1, company spokesman Ramli Djaffar told The Jakarta Post on Wednesday.
"For Jakarta, we have prepared a total of 7,600 kiloliters of gasoline," he said, adding that the amount included stocks of premium, diesel oil, kerosene and bunker fuel.
"We should be able to make a prompt delivery to any area in the capital as soon as we are informed of a shortage," he said. "Of course, we expect the mayoralties to monitor distribution in their respective areas."
He urged the public not to panic and buy more gasoline than necessary because that would lead to a real shortage.
Next month's hike is one of the commitments that the government has made to the International Monetary Fund (IMF) in return for a massive bailout loan.
The government currently spends huge sums of money subsidizing fuel. The benefits are felt mostly by the wealthy, who own vehicles, and industrialists with factories, rather than the poor.
The increase has already been delayed from April 1 because of strong public objections.
Increasing fuel prices has always been a tough political decision for the government as it often leads to protests and sometimes unrest. The last time the government increased fuel prices was in May 1998. Massive protests and bloody riots in Jakarta followed, which contributed to the downfall of then president Soeharto two weeks later.
Under the latest plan, the price of premium gasoline will increase to Rp 1,150 from Rp 1,000 per liter, automotive diesel oil to Rp 600 from Rp 550, kerosene to Rp 350 from Rp 280, and bunker oil to Rp 400 from Rp 350.
To cushion the impact on the poor, the government is preparing direct cash handouts from a fund of Rp 800 billion (US$96 million) allocated for the purpose.
Governor Sutiyoso meanwhile warned hoarders against stocking up on fuel ahead of the price increase.
"Stockpiling fuel is clearly against the law. We will be very strict about this," he said.
Councillor Mardjuan Bakri said the authorities should closely monitor the distribution of fuel in anticipation of panic buying.
The Indonesian Consumer Organization (YLKI) meanwhile demanded the government postpone the plan once again because of doubts that the cash subsidy plan for the poor will work.
YLKI chairwoman Indah Suksmaningsih said that while she fully agreed that fuel prices must be raised, the government seemed ill-prepared to implement the subsidy scheme, which she judged to be open to manipulation.
She said the government has also failed to explain the impact of the increase on inflation.
YLKI has also suggested that the government give poor people free education and free health services as compensation for the increase in fuel prices. (dja/09)