Wed, 23 Jan 2002

Villagers abandon kerosene, turn to firewood

Agus Maryono, The Jakarta Post, Purwokerto

The soaring prices of basic commodities caused by fuel price increases have forced people to try to reduce their expenses.

Villagers in several parts of Central Java have gone back to using firewood for cooking in place of kerosene.

"Rather than spending Rp 1,300 for a liter of kerosene which can only be used for a day, it's better to use firewood. One bundle can be used for three days," said Sumirah, a resident at Sikampuh village in Kroya subdistrict, Cilacap regency.

She is one of thousands of poor villagers in Central Java, who have complained about the soaring price of kerosene. Kerosene was sold for Rp 1,300 per liter in nearby outlets, although the official price is only Rp 600 per liter. In some remote areas, it even rose to Rp 1,400 a liter.

"I don't know why this has happened. The country led by President Megawati Soekarnoputri is said to have prospered, but all the prices of basic commodities have risen," Sumirah added.

A similar grievance was also voiced by Pak Kumis, a 50-year- old trader of chicken noodles on the campus of the state-run Soedirman University in Purwokerto.

He even vowed not to vote for any party in the 2004 general elections, arguing that all the political groups had only made lofty promises and lied to their constituents.

Megawati's government announced last week an average 22 percent increase in fuel prices, effective from Jan. 16. Under the new policy, the price of kerosene was set at Rp 600 per liter, up from Rp 550.

The increase was aimed at gradually reducing the government's fuel subsidy, which has been a huge burden on the state budget.

The amount of the former fuel subsidy would instead be allocated for relief programs for the needy. The government plans to allocate Rp 2.8 trillion for the poor across the country this year. However, local authorities in the provinces and regencies are unclear as to how to deliver the aid.

Critics have said the increases have only made people from lower income groups suffer even more amid the country's prolonged economic crisis.

Concrete efforts by the government to improve the daily income of people were also not clear. The government has even admitted that it is powerless to prevent the prices of basic commodities from rising following the increase in fuel prices.

Housewives in the Central Java towns of Banyumas, Purwokerto and Cilacap have begun to abandon kerosene and are switching to firewood for cooking.

Despite firewood being readily available, its price has also increased due to the rising demand for the commodity amid the shortage of kerosene.

One bundle of firewood, which used to cost only Rp 1,200, is now sold at Rp 1,500.

However, compared to kerosene, firewood is much more economical. For each of the families in the villages, one liter of kerosene is enough only for one day, while one bundle of firewood lasts for at least three days.

Apart from it being more economical, the price of kerosene is not stable and is likely to further increase in Central Java.

Kerosene is sold for Rp 775 per liter at its depots, while street vendors set prices ranging from Rp 1,200 to Rp 1,400 per liter.

"We buy it (kerosene) from the depots at a high price, so we sell it also at a higher price. Why should we have to lose?" said Sulistiyanto, a kerosene vendor in Bojongsari village in Kembaran subdistrict, Banyumas.

M. Rofik Widadi, head of the economic division at the Banyumas administration, said the shortage of kerosene was due to the lack of supply from state-owned oil and gas company Pertamina.

He cited as an example that Banyumas, which has around 1 million consumers, needs a daily supply of at least 240 kiloliters of kerosene, but Pertamina has provided only 160 kiloliters since last year.

"That's why it's not surprising that kerosene is hard to find here now. But we proposed to the government that Pertamina increase the supply two weeks ago, but there has been no response yet," he said.

Sugiat, a 43-year-old kerosene agent in Purbalingga regency, confirmed that the stock was limited. "Usually we receive a supply of around 1,000 liters per day, but recently, we get 1,000 liters twice a week."

However, Pertamina officials and oil and gas businessmen have denied the decrease in kerosene supplies in the province. They instead blamed the shortages on the move by certain dealers to hoard the fuel to profit from the price increase.

Gugur Martono, head of Pertamina's local marketing division in Cilacap, said the additional supply of kerosene would not address the persistent shortages across Central Java.