Pertamina reduces kerosene supply across the city

Pertamina reduces kerosene supply across the city

Dewi Santoso, The Jakarta Post, Jakarta

State oil company Pertamina said on Tuesday that it would
cut back its kerosene supplies to its agents around Jakarta
starting in February due to an allegation that it was being sold
illegally sold to the industrial sector.

"The government and the House of Representatives have asked us
to crack down and get a handle on the (kerosene) distribution as
there are indications that it is being sold to the industrial
instead of household sector," said Pertamina spokesman Awi Adil.

He added that Pertamina would increase the number of days that
it is not delivered from six days last year to 18.

"It means there will be 18 days during the year (2004) in
which Pertamina will not distribute kerosene to its agents."

In 2003, the standard volume of kerosene that Pertamina
distributed was 3.85 million kiloliters (kl), or seven million
liters daily, whereas this year the standard volume is reduced by
54,000 kl to 3.796 million kl.

Awi said that all 816 agents across the city were supposed to
sell kerosene to households and small businesses and not to large
companies, as the government was already paying for considerable
subsidies for the household kerosene.

Based on Presidential Decree No. 90/2002 on the retail prices
of fuel, kerosene should be Rp 700 (8.3 U.S. cents) for
households and small businesses while for the industrial sector,
the government sets the price at Rp 1,800. In 2003, Ministerial
Decree No. 541/103/SJ/2003 was issued, setting the highest retail
price of kerosene at Rp 890 for households and small businesses
and Rp 1,980 for the industrial sector.

The potential kerosene shortfall has made many agents feeling
uneasy as they claim they could lose a significant amount of
business.

Yunus, a kerosene agent at Jembatan Gambang Dua, North
Jakarta, expressed concern that he might lose his business due to
the reduction.

"They (Pertamina) usually deliver the kerosene three times a
week. If the cut is applied, what'll happen to my business?" said
Yunus, adding that he earned only a small amount as he sold
kerosene at the government rate of Rp 885 per liter, but paid Rp
4.15 million for 5,000 liters.

Ginting, a kerosene agent in Jembatan Besi, West Jakarta,
complained that the cut might do her harm as well.

"The truck comes to my shop on Mondays, Wednesdays and
Fridays. It didn't come here last Monday due to the holiday, and
just that was enough to give me a headache. If the cut is
effective, I'll receive less kerosene and have less to sell. How
will I feed my family?" she said.

Ginting pays Rp 4.1 million for 5,000 liters of kerosene and
sells it at Rp 855 per liter.

The Jakarta Post observed that many people could still buy
kerosene but at a much higher price than the agents claim.

Pujo, the owner of a food stall at Jembatan Dua, North
Jakarta, said that he did not have any difficulty in buying
kerosene.

"I don't know about any kerosene shortage. I always buy it
from Yunus at Rp 1,300 per liter," he said.

A fried dumpling seller in Krukut, West Jakarta, Ani, said
that she experienced kerosene shortages a month ago but "now it's
back to normal. I can readily buy kerosene from my regular agent,
but for Rp 1,500 per liter."