RI to import fuel to meet supply shortage
RI to import fuel to meet supply shortage
JAKARTA (JP): Indonesia may import fuel from neighboring
countries to overcome pressing fuel shortages in East Java and
Bali, Minister of Mines and Energy Susilo Bambang Yudhoyono said
on Wednesday.
"I've told (state oil and gas company Pertamina) that during a
crisis like this we must resort to importing fuel to meet
demands," he told reporters prior to attending a weekly Cabinet
meeting.
Bambang was commenting on reports of fuel shortages in major
cities in East Java and Bali over the past few days.
He blamed the fuel shortage, which is affecting in particular
Pertamina's Premium gasoline, on repair works at the Balongan
refinery. The refinery supplies East Java and Bali with some 4
million liters of gasoline per day.
Because of the repair works, he said, the national production
capacity had shrank by 10 percent.
"There is no need to calculate the ups and downs of importing
the fuel now, as long as we can meet domestic demands," he said.
Bambang estimated that the Balongan refinery would resume
operations by July 21.
But he added that it would take about three days for the
Balongan refinery, which uses High Octane Mogas Crude (HOMC) from
Kuwait in its gasoline production, to return to its normal level
of production.
Bambang also attributed the current shortages to the fire at
Kuwait's Al Achmadi refinery, which supplied HOMC crude to
Balongan.
"In times of crisis, we usually ask for some of Singapore's
supply, but this time their supply has ran out to meet demands on
America's east and west coasts," he explained.
Because of this, he said, fuel from the Cilacap refinery had
been used to meet demand in Western Indonesia instead of Central
and East Indonesia.
"Consequently, several cities are experiencing a shortage of
Premium gasoline," Bambang said.
He said that people in Bali had panicked and bought up
gasoline stocks, fearing a complete dry up.
"There is also information that some people have stockpiled
the gasoline to sell it to foreign buyers," Bambang said.
He was referring to subsidized fuel that attracts smugglers.
Pertamina distribution director Harry Poernomo said that
despite competing demands from the United States, Pertamina was
planning to import gasoline directly from Malaysia, Singapore or
China.
"If we cannot handle the shortages while imports from Kuwait
remain disrupted, other provinces in Sumatra will also face a
shortage in gasoline," he warned.
He said that the incident had prompted Pertamina to reduce its
gasoline buffer stock to 18 days from the normal 23 days.
"The only way to secure domestic supply is not to buy up the
fuel in the market," he explained.
Harry stuck a more cautious note when he was asked when he
expected the Balongan refinery to start pumping again, saying it
could be July 26 at the earliest. (bkm/prb)