Pertamina introduces color-coding keroscene today
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