Officials give differing figures on fuel smuggling

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.