Pertamina disciplines 14 fuel distributors in Central Java
Pertamina disciplines 14 fuel distributors in Central Java
Suherdjoko, The Jakarta Post, Semarang
State oil and gas company PT Pertamina has disciplined 14
kerosene distributors in Central Java for violating their
distribution contracts, said a senior official at Pertamina's
Central Java and Yogyakarta Marketing Unit IV.
The disciplinary measures were in the form of a reduction in
kerosene quotas from Pertamina.
According to M. Sustiadji, the general manager of PT
Pertamina's Marketing Unit IV, the 14 companies were found guilty
of abusing contracts, which led to a kerosene shortage in the
province.
He explained that the 14 distributors had not sold the
kerosene to the public, as required by their contracts, but
instead sold it to factories or mixed it with diesel fuel for
sale to the public.
The practice enabled them to reap higher profits at the
expense of the public, he said.
"The illicit practice led to a scarcity of kerosene in Central
Java," said Sustiadji, after attending a hearing with Commission
B of the Central Java legislative council.
Of the kerosene distributors disciplined, two are based in
Semarang municipality, one in Pekalongan municipality, four in
Klaten regency, two in Karanganyar regency, three in Sukoharjo
regency and two in Surakarta municipality.
According to Sustiadji, the 14 distributors' quotas have been
cut by 96.5 kiloliters in total. The penalties were enforced last
week and will last three months.
He did not say by how much each distributors' quota was
reduced.
"We'll watch the developments in the coming three months. If
they continue to violate (their contracts), we'll take harsher
measures," he said.
Separately, Sutoyo Abadi, a council member from Commission B,
said the penalties were too light. "It is already clear that
there was a violation that caused a kerosene shortage. It would
be best to suspend their permits for three months, then give them
the opportunity to do business again while keeping an eye on
them. If they still violate their contracts, just revoke their
permits for good," he said.
Due to the kerosene shortage, Pertamina started on April 14
directly supplying kerosene to markets in Central Java. As many
as 266 kiloliters has been distributed by tankers and sold
directly to the public. The shortage saw retail prices soaring to
Rp 1,500 (18 U.S. cents) from Rp 900 per liter.
Sustiadji said his office had requested that Pertamina
headquarters increase his unit's kerosene quota to 1,540,000
kiloliters in 2004, up from 1,468,860 kiloliters previously.