Pertamina says fuel stocks enough to anticipate surge

Pertamina says fuel stocks enough to anticipate surge

JAKARTA (JP): State oil and gas company Pertamina said on
Thursday it had stockpiled enough fuel to anticipate a sudden
surge in demand ahead of a fuel price increase on Sunday.

"Our fuel stock is enough for 23 days of national consumption.
We don't expect the public to panic and rush to buy fuel prior to
the implementation of the fuel price increase. Anyway, we are
ready to handle any possible rush on fuel," Pertamina spokesman
Ramli Djaafar told The Jakarta Post.

According to Ramli, Pertamina employees across the country
were prepared to monitor fuel demand around the clock, and take
quick action to increase supplies in cases of sudden surges in
demand.

"Thus far, as far as fuel supply is concerned, the situation
is calm across the country. We haven't seen any sudden surges in
fuel demand," Ramli said.

Ramli also denied reports that fishing companies in Maluku and
Irian Jaya were suffering from a fuel crisis, insisting that fuel
supplies in both provinces were sufficient.

The Association of Indonesian Fishing Companies (Gappindo)
said earlier a number of fishing firms were unable to operate at
full capacity over the past two months due to a shortage of fuel.

Gappindo said many owners of fishing boats and fish processing
plants in both regions had to line up at Pertamina's fuel depot
for hours, and ended up receiving only 30 percent of the fuel
they required.

The association warned that numerous fishing companies, which
play an important role in the two regions' economies, would go
under if the situation was not addressed and the government went
ahead with its plan to raise fuel prices on Sunday.

Ramli insisted Pertamina's fuel supplies to both regions were
sufficient.

According to Ramli, fuel demand in the two regions had surged
to above normal levels over the past two months, which he said
was mainly the result of an increase in demand from big shipping
companies.

However, he said Pertamina refused to increase supplies to the
two regions for fear the additional fuel would be hoarded or
smuggled.

"I am not saying the fishing companies want to hoard or
smuggle the fuel, but we have records of the normal level of fuel
needs for all areas across the country, including Irian Jaya and
Maluku, and we supply fuels based on these records.

"Thus, if fuel demand in one area suddenly rises above normal
levels, we first carefully study the reasons behind the rise in
demand before adding supplies to the area. We don't want the
additional fuel to be hoarded or smuggled."

The government plans to raise fuel prices 12 percent on Sunday
in a bid to cut fuel subsidies, which was agreed to with the
International Monetary Fund (IMF), which is providing the country
with bailout loans.

The government initially planned to implement the fuel price
increase on April 1, but delayed the plan following a public
outcry.

There have been numerous demonstrations against the
government's plan to raise fuel prices, but President Abdurrahman
Wahid has said the government will not delay the hike any longer.

The price for Premium gasoline will increase to Rp 1,150 (13
US cent) per liter from Rp 1,000 per liter; automotive diesel oil
to Rp 600 per liter from Rp 550; kerosene to Rp 350 per liter
from Rp 280; and bunker oil to Rp 400 per liter from Rp 350 per
liter.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro
said earlier the 12 percent increase in fuel prices would allow
the government to cut fuel subsidies by Rp 800 billion from
October to December.

He said the money would be used to finance programs that
benefit the poor.

The money will be distributed by the Ministry of Settlement
and Regional Infrastructure and the Office of the State Minister
of Cooperatives and Small and Medium Enterprises in a number of
programs designed to benefit the people, he said.

Fuel price is traditionally a sensitive issue in the country.
The government last raised fuel prices in May 1998, which was
followed by riots which contributed to the downfall of then
president Soeharto. (jsk)