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Amid reports of kerosene shortages in some parts of the
country, the downstream oil regulator will conduct a survey on
household kerosene needs to enable more efficient distribution of the
subsidized fuel.
The Downstream Oil and Gas Regulatory Agency (BPH Migas) will conduct
the survey next year to try to find out exactly how much kerosene is
actually needed by consumers, Eri Purnomohadi of BPH Migas told a
discussion on the subject Tuesday.
"The survey is important so that we can establish a distribution system
that is capable of guaranteeing that the subsidized kerosene reaches
the right hands," he said.
The government has allocated a quota of 9.9 million kiloliters of
subsidized kerosene this year to distributors at a price of Rp 2,250
per liter, meaning a total subsidy of Rp 30 trillion.
Eri said that some distributors were selling the subsidized fuel to
medium and large-scale industries, which were not eligible to receive
the subsidized fuel.
Kerosene for industrial use is currently priced at between Rp 5,000 and
Rp 6,000 per liter.
Consumption of subsidized kerosene is decreasing from year to year. In
2005, it stood at 10 million kiloliters, while in 2000 it was 12.8
million kiloliters.
A pilot survey would first be held in Jakarta before being extended to
the rest of the country, Eri explained.
According to the Association of Oil and Gas Suppliers (Hiswana Migas),
the real problem concerned the distribution system, rather than
monitoring.
Jakarta currently has some 210 kerosene agents and 1,500 distributors,
which are required to record data on sales and customers on cards
issued by the government. This is required to ensure that the
subsidized kerosene goes to the right people.
However, only 10 percent of the distributors actually return the cards,
according to Haposan Siregar, the chairman of the Jakarta branch of
Hiswana Migas, whose members are supplied by Pertamina.
"Pertamina needs to take action against these distributors" he said.
Local officials, such as subdistrict heads, also needed to take part in
monitoring kerosene agents and distributors in their respective area.".
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