Pertamina introduces color-coding keroscene today
Fitri Wulandari, Jakarta
State-owned oil and gas firm PT Pertamina starts a color-coding program for subsidized kerosene on Saturday in Greater Jakarta as part of efforts to help tackle shortages in the area.
Pertamina spokesman Hanung Budya Yukyanta said the program would be extended in July to other areas that have also suffered shortages.
The color-coding is aimed at differentiating subsidized kerosene for households from kerosene for industrial use. Under the program, the subsidized kerosene will be tinted green.
For the past few months, households in the Greater Jakarta area and other parts of the country have suffered from kerosene shortages. Officials have accused distributors of selling subsidized kerosene to industries to gain greater profit.
The color-coding is expected to deter distributors from distributing the subsidized kerosene to industries as they would be punished for such a violation.
Pertamina initially planned to start the program in the middle of April. But Hanung said the marker substance for the coloring was stuck in the customs office.
Pertamina imported the coloring substance from the United Kingdom.
The color-coding program will cost Pertamina some Rp 40 billion (about US$4.71 million) until the end of the year. It will be used to color some 2.3 million kiloliters of kerosene for households in Greater Jakarta.
Hanung said the company would temporarily pay the cost of the color-coding program until the Ministry of Finance agreed to cover the cost.
The government has acknowledged that a price disparity between subsidized and unsubsidized kerosene had been the main reason behind the shortage.
The price of subsidized kerosene mainly for low-income households is Rp 700 per liter, while regular kerosene for industries is sold at between Rp 1,800 and Rp 2,200 per liter.
Kerosene distributors took advantage of the price gap by hoarding the fuel and selling it to industries.
Ibox
Fuel prices in May unchanged
Fuel prices for the month of May will not change, except fuel oil for industry, state-owned oil and gas company PT Pertamina announced on Friday.
The company said in a press statement that the price of fuel oil was raised by 1.9 percent to Rp 1,590 per liter. This was mainly due to higher price of fuel oil in Singapore, the company added.
The price of premium gasoline and kerosene (for industries) remains at Rp 2,100 per liter and Rp 2,200 per liter, respectively. The price of automotive diesel oil is Rp 2,100 per liter, while industrial diesel oil is Rp 2,050 per liter.
For the transportation sector, the price of premium gasoline at gasoline stations stays at Rp 1,810 per liter.
The price of automotive diesel oil and industrial diesel oil will stay at Rp 1,650 per liter respectively, and fuel oil at Rp 1,560 per liter.
Subsidized kerosene for households stays at Rp 700 per liter.
Prices of Pertamina's high quality gasoline brands Pertamax and Pertamax Plus at gas stations stay at Rp 2,750 per liter and Rp 2,450 per liter, respectively.--JP