Indonesia Buys Up Fuel Stock
Friday, 09 May, 2008 | 14:49 WIB

TEMPO Interactive, Jakarta: Indonesia has started to buy up fuel stock as the government plans to increase the price of fuel by 30 percent in the near future. Long queues outside Java occurred in several gas stations.

“Fuel consumption will be increased,” said marketing and commerce director of Pertamina in Jakarta yesterday. People tend to stock up on fuel due to the fuel price increases. “It’s happened in several regions,” he said.

Tempo found a higher demand for petrol and diesel, in West Java, Central Java, Yogyakarta, and East Java.

There are 20 percent and 40 percent rises in petrol and diesel consumption in Bandung, compared to last month. “People are panicking due to the government’s plan to increase fuel prices,” said Zibali Hisbul, fuel retail sales person of Pertamina for Bandung, yesterday.

Vehicle queues happened in several gas stations right after President Susilo Bambang Yudhoyono announced the plan to increase fuel prices last Monday.

At a gas station in Sleman, Yogyakarta, a 50-meter queue occurred from 6.30am. In one- and-a-half hours, the petrol stock was finished. “We don’t have any more stock,” said the gas station manager, Abdul Haris Santoso.

In Banjarmasin, Palangkaraya, and Kendari, gas stations were closed earlier. “I have been in a queue for five hours since 07.00am but did not get any diesel,” said Ahmad, a truck driver in Banjarmasin yesterday.
Because of the long queue, motorbike riders bought petrol sold by unofficial gas sellers with a higher price of Rp6,000 per liter. In other parts of Banjarmasin, Hulu Sungai Utara and Tabalong, the petrol price was at a rate of Rp8,000 to Rp8,500 per liter.

Pertamina spokesperson, Wisnuntoro, admits there is a panic in the community. He predicts the fuel demand will continue to increase. At the present, petrol consumption is 1.4 million kiloliter per month while for diesel it is 900,000 thousand kiloliter per month.

In order to control the fuel consumption, Pertamina is coordinating with gas stations to tighten the selling by forbidding industry to buy gas from gas stations and consumers to buy gas with jerry cans. “There is no need to panic, we have enough stock,” said Achmad Faisal.

Pertamina also asked the governor and the police force to monitor smuggling.

In Palangkaraya, police caught a man buying fuel repeatedly for his Kijang. “We will make sure gas stations are free from speculators,” said head of the sub-regional police in Palangkaraya, Andi Fairan.

The Coordinating Minister for the Economy Boediono confirmed that the fuel price increases will be only once for this year. Finance Minister Sri Mulyani is optimistic Parliament will agree to this decision. “We are not concerned any more,” said Sri Mulyani yesterday.

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