Indonesian Political, Business & Finance News

Southeast Aceh Regency limits fuel purchases to prevent hoarding

| Source: ANTARA_ID Translated from Indonesian | Energy
Southeast Aceh Regency limits fuel purchases to prevent hoarding
Image: ANTARA_ID

The Government of Southeast Aceh Regency, together with the local Regional Leadership Coordination Forum (Forkopimda), has begun limiting the purchase of subsidised fuel oil (BBM) for the public as an effort to address long queues at every filling station (SPBU) in the region, following a restriction in fuel supply to the area. “We are implementing this restriction as an effort to make it easier for the public to purchase subsidised fuel at SPBUs,” said Southeast Aceh Regent Muhammad Salim Fakhry in Nagan Raya on Monday. To ease congestion at every SPBU and prevent hoarding practices, the Southeast Aceh Regency Government has also issued an official circular. The circular, among other things, regulates synchronised operating hours for all SPBUs in Southeast Aceh Regency, requiring them to open simultaneously at 6.30 a.m. Western Indonesia Time to prevent repeated refuelling (back-and-forth) between SPBUs. In addition, the local government has also regulated daily purchase limits for subsidised fuel, with a maximum purchase of Rp50,000 per vehicle for two-wheeled vehicles. For three-wheeled vehicles, the limit is set at a maximum of Rp70,000 per vehicle. Meanwhile, four-wheeled vehicles are limited to a maximum of Rp250,000 per vehicle, and six to ten-wheeled vehicles are allowed a maximum of Rp500,000 per truck for subsidised diesel. “We took this step not because of a scarcity of stock, but due to a reduction in the daily supply quota and to anticipate long queues,” said Salim Fakhry. With these synchronised opening hours and restrictions, he said, the Southeast Aceh Regency Government is striving to minimise opportunities for subsidised fuel hoarding by irresponsible individuals. The Regent added that this emergency policy has also received appreciation from Pertamina and SKK Migas. The regulation will remain in effect until the fuel distribution conditions return to normal. In addition, the Southeast Aceh Regency Government has also submitted a formal proposal to PT Pertamina to increase the supply quota per tanker to SPBUs from 8 Kilolitres to 16 Kilolitres, in order to meet the needs of the local community.

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