Police make 71 arrests in fuel hoarding operations

Suherdjoko ,  The Jakarta Post ,  Semarang, Jakarta   |  Sat, 05/17/2008 11:15 AM  |  Headlines

Central Java Police have seized more than 7 million liters of suspected hoarded subsidized fuel in 48 locations and have arrested 71 suspected hoarders.

Central Java Police spokesman Snr. Comr. Syahroni said in Semarang on Friday the alleged illegal hoarding had taken place since the government announced imminent fuel price rises of up to 30 percent.

The seized fuels consist of 2,840 liters of Premium gasoline, 4,723.670 liters of diesel fuel and 3,012,724 liters of kerosene, Syahroni said.

"We are still after another two people suspected of supplying the fuels."

Along with fuel, police also confiscated one large truck, four smaller trucks, 10 motorcycles and three pumps.

The arrests are the latest evidence of increased illicit activities since the government announcement. Police in other provinces have also made arrests in similar cases.

In Jakarta, also Friday, police said they arrested 57 suspected hoarders during police operations over 16 days.

State oil and gas company PT Pertamina said fuel consumption has risen by an average of 15 percent over the last two weeks, mostly because of panic buying and hoarding.

In addition, there have been cases where people sold subsidized fuel to industries not entitled to the subsidies.

For this year, assuming an average oil price of US$95 per barrel, government policy is to cap the fuel subsidy allocation at Rp 126.8 trillion. However, with oil prices currently over $125 a barrel, the government says it has to raise domestic fuel prices to maintain state budget stability.

Syahroni said after the arrests that police will be monitoring fuel distribution more intensively from Pertamina's depots to small distributors and retailers, including gas stations.

Jakarta Police spokesman Sr. Comr. Ketut Untung Yoga Ana said the 57 arrests were backed by evidence comprising 24,985 liters of kerosene and 48,065 liters of diesel fuel.

Ketut said the arrests were made at 41 locations in Greater Jakarta, including Jl. Duri Raya in Tambora, West Jakarta; Jl. Raya Serang No. 8 in Tangerang, Banten; and Jl. Tol Jakarta-Cikampek Km 20 in East Bekasi.

Police also seized a total of 12 trucks, four boats, two settling tanks and cash totaling Rp 7,75 million ($836). (lva)

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