Pertamina ensures fuel supply
Fabiola Desy Unidjaja, The Jakarta Post, Jakarta
State oil and gas company Pertamina will guarantee fuel supplies nationwide following the increase of fuel prices late Monday.
The company has also promised to take stern measures against any distributors that cause supplies to be disrupted.
Pertamina president director Widya Purnama said on Tuesday that the company had enough stock for 22 days and had ensured that all fuel depots were fully stocked.
"The fuel price increase will not cause shortages. We have checked our supply and it is enough to meet demand," he said.
Widya and 10 Cabinet members conducted a snap inspection late Monday after the average 29 percent price increase was announced. The entourage visited Pertamina's Plumpang fuel depot in North Jakarta.
The price hike was brought about by the cut in the fuel subsidy, which became necessary due to dwindling local oil reserves and increasing international crude prices.
Widya said Pertamina and the government would monitor the distribution and minimize leakages in the distribution and watch for underhanded practices, such as stock piling and mixing fuel with other substances.
"I promise to tighten the supervision and close down gas stations that stockpile fuel," he said before a meeting with House of Representatives Commission VII on mining and environmental affairs.
Prior to the announcement, Jakarta Police arrested four personnel at a gas station in South Jakarta for mixing kerosene, Premium fuel and oil paint.
Pertamina indicated earlier that there had been a 15 percent increase in fuel consumption in the past two months due to speculation on fuel prices.
The government also plans a series of measures to keep fuel and food supplies stable. The central bank is also expected to introduce monetary policies to keep inflation at a reasonable level.
Separately, Minister of Trade Mari E. Pangestu told House Commission VI on industry, trade and investment that her ministry would intervene in the market to keep prices at a reasonable level.
"We had a snap inspection last night and found no indication of skyrocketing prices for staple foods," she said.
She said there would be further market inspections and intervention to ensure that food supplies and prices were maintained.