Kerosene conversion almost completed

Mustaqim Adamrah ,  The Jakarta Post ,  Jakarta   |  Thu, 05/15/2008 12:20 PM  |  City

The government has finished its kerosene-to-gas conversion program for the capital's low-income households, says state oil and gas firm PT Pertamina.

Pertamina spokesman Wisnuntoro said Wednesday there were around 30,000 units of gas stoves and three-kilogram liquefied petroleum gas (LPG) cylinders left for micro, small and medium businesses.

"We have distributed more than 1.9 million units of gas stoves and LPG cylinders and we have finished the program for low-income families," he said.

"We still need to give away 30,000 units to micro and small-scale businesses, including street vendors. We have a target of 500,000 cylinders and stoves for distribution," he said.

He said the businesses were in West Jakarta and East Jakarta.

Wisnuntoro said the firm had initially set a target of 1.5 million receivers, comprising low-income families and micro, small and medium entrepreneurs.

"But our target has now become 2 million because there were a number of businesses left off our first lists," he said.

Although the conversion program is about to be completed as scheduled, Wisnuntoro said Pertamina had not set a new date for when it would stop distributing subsidized kerosene in the capital.

"It will depend on the situation but it will not interfere with the plan to increase fuel prices," he said.

The government has announced its plan to raise fuel prices by 30 percent in early June in an effort to cut rising fuel subsidies.

Wisnuntoro said Pertamina had been selling non-subsidized kerosene priced at Rp 43,000 (US$4.65) for a five-liter container at 24 gas stations.

He said Pertamina had gradually cut its subsidized kerosene supply in the city from 3.5 million liters a day to 100,000 liters a day at present.

The government began its program in December 2006, with Pertamina playing a leading role in its implementation.

The government hopes the program will reduce spending on fuel subsidies, which currently cost about Rp 40 trillion every year.

The program has faced hurdles ranging from complaints from households about defective gas stoves to subsidized kerosene scarcity in the areas where the program is yet to be completed.

Another hurdle is likely to arise as the city does not have enough LPG stations.

The city needs at least five LPG-filling stations in each municipality or 25 throughout the city. However, it currently has seven stations only, mostly in North Jakarta.

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