Pertamina yet to resolve fuel crisis

Nana Rukmana, The Jakarta Post, Indramayu

Pertamina, the state-owned oil firm, said it would not supply kerosene to the southern part of Central Java to help resolve the crisis there until it was instructed to do so.

"So far, there are no (planned) distributions of kerosene to regions in Central Java facing the shortages," Lukman, head of marketing division in Pertamina's Balongan refinery in West Java, told The Jakarta Post on Thursday. "We have not received any instruction from authorities to do that."

Fuel distributions for Central Java and Yogyakarta provinces, he said, fall under the responsibility of the Pertamina marketing division VI in Semarang.

The kerosene crisis has spread from Purbalingga to the regencies of Banyumas, Purwokerto and Cilacap in the southern part of Central Java, causing prices to soar by almost 100 percent per liter.

Kerosene is now sold there at between Rp 900 and Rp 1,000 per liter, while the official price is only Rp 550 per liter.

The shortages were due to rising demand ahead of the Idul Fitri and Christmas celebrations. This situation has been exacerbated by local scalpers who have been stockpiling kerosene for higher profit.

Central Java Governor Mardiyanto said he has been working with local district administrations and Pertamina, as well as private fuel distributors, to cope with the crisis.

He vowed to take swift action against any speculators stockpiling kerosene to manipulate prices.

"I will cooperate with Central Java Police Chief Insp. Gen. Erwin Mapasaeng to do that," he added. "Any stockpilers will get a firm response, because they have violated the law -- I am not playing games."

Mardiyanto said the crisis has imposed yet another harsh burden on middle- and lower-class people, most of whom consume kerosene.

He specifically urged Pertamina to be proactive in helping resolve the kerosene shortages.

Meanwhile, private distributors grouped in the Association of Oil and Gas Businessmen (Hiswana) in Banyumas have announced the launch of a "massive market operation" to overcome the kerosene crisis across the Central Java.

As part of the operation, every district will receive a supply of 10 tanks per day, each containing 5,000 liters, ahead of Idul Fitri holidays.

"This number is not enough, but it is a first step in anticipation of worse shortages," said Hiswana chairman Anas Pribadi of the Banyumas branch.