Pertamina to complete conversion program in Bali this year

Dicky Christanto , The Jakarta Post , Denpasar | Wed, 04/02/2008 1:55 AM | Bali

The Bali branch of state gas and oil company Pertamina is expected to complete the kerosene-to-gas conversion program on the resort island this year, an official said Monday.

The branch's kerosene sales coordinator Putut Andriyatno said Pertamina was now gradually reducing its kerosene supply down to 25 kilolitres per day from the previous 50 kilolitres allocated to two districts on a daily basis.

Pertamina distributes 500 kilolitres of kerosene to the island every day.

"We have started distributing free LPG cylinders and stoves to residents of East and South Denpasar districts, while reducing kerosene supplies to those districts," he told The Jakarta Post on Tuesday.

The branch's LPG sales coordinator, Abdul Manan, said Pertamina had already distributed 50,000 free LPG cylinders, from the 560,000 cylinders to be distributed this year.

He said they would continue the program in other regencies after the cylinder and gas stoves had been distributed in Denpasar, the island's capital.

"We will commence the distribution program in the neighboring regency of Badung right after we finish the program in Denpasar," he said.

He said there had been no complaints in the two districts about the reduction in the kerosene supply, and people had responded well to the conversion program.

The government started its nationwide kerosene-to-LPG conversion program in December 2006, with assistance from Pertimina.

The program is expected to significantly cut the government's spending on fuel subsidies, which reaches Rp 40 trillion (US$4.35 billion) every year.

The reduction in kerosene has created a kerosene scarcity in Denpasar's markets.

A resident, Putu Mudani, acknowledged she has kept her kerosene stove even though she has received her government-issued free gas stove.

"It's really difficult to find kerosene in the market nowadays, its been scarce for the last two weeks. I usually buy it at Rp 22,000 per three liters but now I cannot find it anywhere near my house. Maybe it's part of the conversion program," she said.

She expected the government to train residents to use the gas stove.

"The training is important, particularly for low-income households, who have no prior experience in using a gas stove. Such training will prevent any gas-related accidents from taking place," she said.

Manan said Pertamina had taught people about safety precautions in a series of workshops, and had carried out additional security precautions before the delivery of the first free gas cylinder.

A week before the delivery day, he ordered his team to fill all cylinders with gas to identify leaks before they were distributed.

"As many as 253 cylinders failed the test and we didn't distribute them. By doing so we prevented any leakage-related incidents in the future," he said.

The preventive measures were taken after Manan heard about several incidents in Jakarta and Surabaya.

"In those places the cylinders were filled right before they were distributed, so the distribution team couldn't check to see if there were any leaks in the cylinders," he said.

Cylinders had reportedly exploded during distribution, allegedly caused by improper use and storage of the stoves.

He said Pertamina had also guaranteed the sustainability of the current type of LPG being distributed to residents, including the stability of its price.

"We have it under control, so there is practically nothing to worry about," he said.

The 13-kilogram LPG cylinders are sold at between Rp 12,500 and Rp 13,000 each.

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