Yogyakarta all fired up over kerosene

Slamet Susanto, The Jakarta Post, Yogyakarta

More than a month before the government increases fuel prices nationwide, residents in Yogyakarta have began stock-piling kerosene, causing a shortage of the fuel on Monday.

Wiyono, a kerosene agent in Sleman, said that many residents, especially sidewalk vendors, had started buying large quantities of kerosene after they learned about the planned price hike.

He said retailers used to buy an average of 10 liters of kerosene a day; now many were buying up to 25 liters.

"People have been buying up large quantities of kerosene during the past four days and we as agents can't do much to stop it," Wiyono said.

He blamed the increase on the government's plan to lift the subsidies on cooking and transportation fuel on April 1st. The government has not yet said how much it would reduce the subsidies but analysts expect rises in the prices of cooking oil and premium gasoline by at least 15 percent.

"I usually receive a kerosene supply of four barrels (about 2,000 liters) three times a week. That is usually enough for a week, but now people have already lined up before the supply is delivered and it goes very quickly," he said.

However, The Jakarta Post observed that the retail price of kerosene had not yet increased and remained at about Rp 1,200 to Rp 1,300 a liter.

Head of the industry and trade office in Yogyakarta, Syahbenol Hasibuan, confirmed increased demand was behind the kerosene shortage.

"Demand for kerosene in Yogyakarta has drastically increased, far above the available supply, causing scarcity although we have not cut the supply," he said.

Oil company Pertamina Yogyakarta marketing head Imam Hidayat Chalik said the fuel supply in the province was still enough to meet local demand. "Kerosene supplies to agents are not being cut either," he said.

Meanwhile, the prices of other basic foodstuffs, including sugar and rice, also rose in several traditional markets in Yogyakarta.

On Monday, the price of imported sugar increased from Rp 6,200 by Rp 300. Imported rice, which was sold at Rp 3,200 a kilogram last week, was now being sold at Rp 3,400.

"The prices of sugar and rice have started to increase in the last week. I'm sure next week the prices will rise again," a housewife, Sukirah Mulyono, said in Demangan market.