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.