Pertamina asked to stabilize fuel prices in all major cities
Pertamina asked to stabilize fuel prices in all major cities
JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana has
ordered state oil and gas company Pertamina to stabilize the fuel
and lubricant market in all major Indonesian cities following
reports of supply shortages and price increases.
Pertamina launched a market operation Wednesday to stabilize
lubricant prices in Jakarta and West Java by supplying more
lubricants to the gas stations in these areas, but the minister
has asked the company to expand this to all major cities.
"The government has not so far increased fuel and lubricant
prices. Prices have been rising due to the activities of
unethical speculators," Sudjana said after an Idul Fitri
celebration at the ministry office.
He believes some people are stockpiling large quantities of
lubricants and fuel, especially kerosene, to profit from the
situation following rumors that Pertamina did not have enough
lubricants and fuel and would soon raise prices.
Observers say a rush on fuel and lubricants was also prompted
by a recent agreement between the International Monetary Fund and
the government to raise fuel prices in a bid to reduce the fuel
subsidy.
According to the agreement, fuel prices will be raised
starting April.
"The President has not yet decided to increase fuel prices,"
Sudjana said.
Sudjana said he had ordered Pertamina to find out who was
stockpiling lubricants and fuel and report them to the police.
Police and the military have said speculators could be charged
with subversion.
Several major cities reportedly ran short of lubricants in the
past several weeks, leading some gas stations to raise prices.
The price of Pertamina-made Mesran Prima lubricant rose to
between Rp 7,500 (63 U.S. cents) and Rp 11,000 per liter can some
days ago at several Jakarta gas stations. Its previous price was
Rp 5,700.
Kerosene has also reportedly risen to Rp 1,000 per liter in
many areas although its Pertamina-set retail price is Rp 280 per
liter.
Pertamina president Soegianto has said Pertamina does has
enough fuel and lubricants in stock, calling on the public to
stop stockpiling.
He said lubricant sales rose 70 percent in January over the
December figure despite the continued economic slowdown. This
indicates that people are stockpiling.
Pertamina data says the country's demand for lubricants has
reached 400,000 kiloliters per year with a growth rate of 5
percent per year. More than 90 percent of lubricants are supplied
by Pertamina lube plants. (jsk)