Pertamina boosts diesel supplies to end fuel crisis

Pertamina boosts diesel supplies to end fuel crisis

JAKARTA (JP): State oil and gas company Pertamina has ensured
that the diesel fuel crisis in the capital will end by Monday as
it has increased supplies to gas stations throughout the city by
50 percent.

Starting on Friday, Pertamina supplied 5,200 kiloliters of
diesel fuel per day, instead of 3,800 kiloliters as usual, to
overcome the shortage which has hit gas stations in the past few
days.

Pertamina's supplier and distributor unit acting chief A.
Syafrudin, who oversees Jakarta, Banten and West Java provinces,
told a media briefing on Saturday that his office has the
capacity to double supplies.

But, he said, the distributors do not have sufficient oil
trucks to deliver all of the 7,600 kiloliters to 269 gas stations
selling diesel fuel in Jakarta.

"As of 9 a.m. today, we have distributed 1,712 kiloliters to
14 gas stations in East and West Jakarta, and we expect more
reports on others. Diesel fuel supplies at gas stations should be
more than enough now since they have received another 50 percent
of buffer stock," he said.

Pertamina urged consumers to call toll-free hotline Hallo
Pertamina on 0800-1-555555 straight away if they encounter a
shortage of diesel fuel at any gas station.

Syafrudin also revealed that a number of Pertamina staff were
now under investigation for their alleged part in irregularities
in the distribution of diesel fuel.

Uncontrolled distribution has been the main cause of the
recent crisis, Syafrudin said. He said that some action had been
taken to anticipate diesel oil scarcity, which included more
intensive monitoring of fuel distribution from Pertamina to gas
stations.

Several monitoring units have been formed under joint
coordination with the police and the prosecutors' offices to
oversee the distribution of diesel fuel in gas stations as well
as those distributed for bunkers, and also the distribution of
kerosene.

"In the near future, Pertamina will also have its own tanker
trucks and will develop a system to enable industrial customers
to get their supplies directly from us, so they will not need to
use the black market," Syafrudin said.

Jakarta's traffic was more congested than usual in recent days
as long lines of vehicles queued at gas stations to buy diesel
fuel. Many public transportation vehicles that mainly have diesel
engines were forced to halt operations as they ran out of fuel.

Many believe this condition was the effect of the presidential
decree issued in April that increased the price of diesel fuel
for industry. The price of a liter of diesel fuel is Rp 990
(about 90 US cents) for industrial consumers, while the public
can buy it at Rp 600 per liter at gas stations. Many industrial
customers are believed to have bought subsidized fuel from public
gas stations.

Syafrudin admitted that there were still long lines at gas
stations on Saturday but he was sure that things would be brought
under control.

Gas stations at the entrances to toll roads heading toward
Merak, Cirebon and Bandung in West Java also ran out of diesel
fuel, he said, adding that Pertamina was still seeking the best
way to solve the problem.

Pertamina's deputy director of downstream operations Muchsin
Bahar, who attended the media conference, apologized to consumers
for the diesel fuel shortage. He stressed that the problem lay in
the distribution and not the supply.

"I cannot identify which part of the distribution process is
the culprit, whether it is the gas station owners or the oil
transportation service companies. Hopefully this new policy will
show where the problem lies," he said.

He added that the police and prosecutors are now studying the
case to identify the appropriate charges to be made against the
culprits, should a crime have been committed, such as
stockpiling.

Antara reported on Saturday that Jambi and Batam provinces
were also running out of diesel fuel.

Batam officials on Tuesday detained a vessel, Seagull, for
carrying 80 kiloliter of diesel fuel alleged to have been
smuggled, for sale in Singapore. (bby)