Public waits for certainty over fuel hike

Public waits for certainty over fuel hike

The Jakarta Post, Jakarta

Just like everyone else, gas station managers around Jakarta are
anxiously waiting for the exact details of the government's
proposal to raise fuel prices on March 1.

"A lot of customers have asked us when and by how much
gasoline prices will increase," said Ichsan, a gas station
manager stationed in Senayan, Central Jakarta. "We are just as
clueless, we will likely find out when they do."

Waris, a manager at the busy Kelapa Dua gas station in West
Jakarta, was unaware that the government had submitted its
proposal to increase fuel prices by an average of 29 percent to
the House of Representatives for approval.

"Is the government really going to raise prices?" said Waris
whose gas station receives shipments of up to 32,000 liters of
gasoline daily.

He said if the government did announce the price hike, the gas
station would request police security. During the last fuel hikes
in 2003 there were a number of irate customers, who were upset at
not being able to purchase gasoline at the old price after they
had queued for hours, he said.

Waris said that at that time, revenues dropped by 5 percent
for a week before returning to normal.

Surafman, an attendant on duty at the Palmerah gas station in
West Jakarta, said that although most customers were aware that a
price hike was imminent, business was more or less the same.

"Everything's normal," said Surafman, who has been filling up
cars for 20 years. "Except for a few people who come by every day
to fill up (canisters), not wanting to be caught off-guard by any
hike."

The government has repeatedly warned that the state budget
would be crippled without an increase in fuel prices. The current
budget caps fuel subsidies at Rp 19 trillion (US$2 billion), up
from last year's initial budget plan of Rp 14.5 trillion.
However, due to the world wide surge in oil prices, last year's
subsidy ballooned to Rp 59.2 trillion.

Under the government's current proposal, a liter of gasoline
would increase from Rp 1,810 (around US 20 cents) to Rp 2,400.
The current price of a liter of unleaded gas in the United States
is around 52 cents.

Widodo, who the Post met when he was filling up his motorcycle
in Palmerah, said he was angry at the government's lack of
transparency regarding the planned rises.

"First they said an increase would take effect in January and
now it's almost March," said Widodo, who sells textiles as a
living. "Just raise (the prices), the uncertainty is bad for
business." (001/002)