Pertamina ups daily outputput to 190,000 kl
Pertamina ups daily outputput to 190,000 kl
The Jakarta Post, Jakarta
As Oct. 1 -- the day fuel prices are going to be increase by at
least 50 percent -- draws near, more people are panic buying,
forcing state oil and gas firm PT Pertamina to increase its daily
offtake to 190,000 kiloliters (kl).
Pertamina will restrain supply so as to not exceed the current
amount needed to maintain the quota for subsidized fuel,
spokesman Abadi Poernama said on Tuesday.
A supply of even 184,000 kl per day will bring the consumption
of subsidized fuel to over 65 million kl a year, 10 percent
higher than the quota of 59.6 million kl.
Poernama further said that the company would bring some of the
fuel -- especially kerosene -- directly to consumers, instead of
through agents to meet consumers' demand and to balance prices.
"We found many bogus agents in Tangerang, for example," he
said, referring to entities that claim to work as fuel
distributors but instead sell the subsidized fuel to industry.
Since Pertamina started applying market prices -- more than
double the subsidized prices -- for fuel used by industry, many
people have found new jobs as fuel traders -- queuing at gas
stations to get subsidized fuel and reselling it to commercial
users.
Such practices along with panic buying has caused consumption
to rise dramatically, prompting long queues at gas stations in
the provinces.
Pertamina will keep national fuel stocks at between 21.3 days
and 21.7 days until the end of the year, said Poernama. Stock of
premium gasoline will stand at 17.4 days in November and 16.6
days in December, diesel fuel at 17.8 days and 16.4 days and
kerosene at 27.1 days and 29.5 days, in the respective months.
Poernama said Pertamina was refraining from buying fuel
products currently, as prices had soared to US$85 per barrel from
around $70 before Hurricane Katrina and Rita threatened U.S. fuel
supplies.
Pertamina said last Friday that it still needed to secure 5
percent of next month's fuel imports. Poernama said the company
was trying to acquire two more shipments of fuel products, equal
to some one million barrels in total, from the spot market.
Pertamina plans to import 14.76 million barrels of product in
October, 12.88 million barrels in November and 13.48 million
barrels in December.
The company has long-term deals with several producers to
supply some 60 percent of the fuel imports it needs in a month,
securing the balance on the spot market.