Serious shortage of kerosene in N. Sumatra
Serious shortage of kerosene in N. Sumatra
Apriadi Gunawan, The Jakarta Post, Medan
In a protest against the shortages of kerosene, resulting in
higher demand and higher prices, in North Sumatra, hundreds of
people staged a rally at state oil company Pertamina's office on
Thursday demanding that the company take action against
unscrupulous businessmen alleged to be involved in price
manipulation.
The protesters accused the Pertamina Fuel Distribution Office
in Medan and Hiswana Migas -- agents or retailers sanctioned to
distribute fuel and kerosene -- of a conspiracy that has led to
the scarcity of kerosene and a quadrupling of the price in the
province.
The protesters, grouped under the Forum for the People's Care,
demanded that Pertamina immediately arrest those responsible for
the fuel crisis. The price manipulation scheme involves certain
companies that buy the product in bulk at relatively low market
prices, then stockpile it, therefore creating higher demand so
the prices go up and the company can later sell the hoarded
kerosene to the public at higher prices.
Many have accused the companies involved of looking for a
short-term "bonus" ahead of the Idul Fitri holidays, at the
expense of the general public.
They demonstrators issued an ultimatum to Pertamina, giving
them one week to deal with the problem and closely monitor the
distribution of kerosene throughout the province. They vowed to
take the law into their own hands by apprehending the co-
conspiratorial agents if Pertamina failed to meet their demands.
"We are very concerned about the scarcity of kerosene, even
more so now that the Lebaran (Idul Fitri), Christmas and New Year
holidays are getting closer. The sad thing is that it is the
common people in remote areas who will be impacted the most,"
Forum Coordinator Marlon Purba told The Jakarta Post after he met
the Pertamina management.
Marlon claimed that the kerosene scarcity was caused by
unethical Hiswana Migas agents who do not release their kerosene
to the public, and Pertamina does nothing to stop the practice,
despite alleged knowledge of the practice.
He said that his forum had identified at least 15 agents
that have apparently hoarded kerosene and fuel. "They have been
doing it for more than two months."
Marlon, who is also an Indonesian Democratic Party of Struggle
legislator at the provincial legislative council, said the
stockpiling practice had led to the skyrocketing of kerosene
prices throughout most of the province.
In Nias, the most remote area of the province, kerosene is
sold currently to the public at between Rp 1,500 and Rp 2,000 per
liter, while the official price set by Governor Rizal T. Nurdin
is Rp 520 per liter.
Tjandra Putra Kelana, General Manager at Pertamina's UPPDN I
office, confirmed that there were 15 Hiswana Migas agents
suspected to have stockpiled kerosene.
He, however, said that his office had given the suspect agents
sanctions by reducing their daily quota by nearly 20 percent.
"We have even proposed to Pertamina's head office to
permanently revoke the permits of the 15 agents," Tjandra said.
Tjandra promised to take stern actions against any of the fuel
agents found stockpiling kerosene. "There is no compromise for
irresponsible agents," he claimed.
The monthly need for kerosene in North Sumatra is some 70,000
kiloliters. There should not be problems with the supply and
distribution if all the agents comply with the regulations. There
are 198 fuel agents operating in the province.