Officials give differing figures on fuel smuggling

The Jakarta Post, Jakarta

Consistent with the recent flow of inconsistencies, an official at the Ministry of Energy and Mineral Resources issued on Thursday a new figure for fuel smuggling, which is much lower than the figures released by other officials.

Director General of Oil and Gas Rachmat Sudibyo stated that fuel smuggling had cost the government as much as US$3 trillion per year.

Rachmat estimated that about three million kiloliters, out of the total 56 million kiloliters for national fuel consumption, were smuggled annually, with smugglers earning approximately Rp 1,000 per liter.

"So, financial losses to the state are estimated at Rp 3 trillion", he was quoted by www.detik.com, as saying, while on a tour of gas stations along Java's northern coast.

Furthermore, Rachmat mentioned that the fuel types likely to be smuggled were diesel fuel and kerosene. Whereas premium was impossible to be smuggled.

National diesel fuel consumption amounts to 20 million kiloliters per annum, while kerosene consumption reaches 10 million kiloliters.

Rachmat's statement on his estimate of the loss from fuel smuggling came days after state oil and gas company Pertamina president Baihaki Hakim announced on Monday that financial losses from fuel smuggling had reached US$600 million (Rp 6 trillion) per annum.

Much earlier, Coordinating Minister of the Economy Dorodjatun Kuntjoro-Jakti disclosed that national losses from fuel smuggling were Rp 57 trillion per year.

According to Baihaki, Dorodjatun's argument was based on data from the Ministry of Fishery and Maritime Affairs.

In addition, Baihaki explained that his calculation was based on Pertamina's supply of 33 million kiloliters of automotive diesel oil per year.

He estimated that ten percent of the 33 million kiloliters of diesel fuel worth $600 were smuggled.

Meanwhile, the chief of the joint team on fuel distribution, Slamet Singgih, said his team had tried its best to suppress fuel smuggling, but many officers in the field had not supported the team wholeheartedly.

"If all officers acted resolutely, I'm sure that national financial losses in 2002 could be reduced by 50 percent," Slamet said.