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Gasoline hits Rp 20,000 in East Kutai
The price of subsidized gasoline in the Kalimantan hinterlands hit a record Rp 20,000 (US$1
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The price of subsidized gasoline in the Kalimantan hinterlands hit a record Rp 20,000 (US$1.61) per liter as of Wednesday -- just three days after the central government dropped the official price to Rp 5,500 per liter from Rp 6,000.
The high price was evident in Muara Wehea and Kung Beang districts, East Kutai regency, where it has been rising steadily since last week, as Dec. 1, the date for the reduced price to kick in, drew near.
"It's very hard to get fuel out here these days," said Ram, a retailer. "We are selling our old stock."
The only supplier in Muara Wehea has ran out of fuel, he said.
Chris, a retailer from Nehas Liah Bing village, said that of the seven gasoline stores there, only one was still operating. The set price was Rp 15,000 per liter, he said.
In Wanasari village, Jul, whose kiosk was still open, was selling gasoline for Rp 20,000 per liter.
"I don't know when this situation will end," Jul said. "So if you want to buy gasoline, that's the price, no less."
Speculation is growing over the reason for the region's rising fuel prices.
Some believe it is because owners of gas stations and fuel agencies chose not to distribute fuel before Dec. 1, to avoid incurring any losses.
Others suggest it is because of the severe damage on the Trans-Kalimantan road connecting Sangata and Wehea, especially during the rainy season.
"The road is severely damaged. No fuel truck can get along it," said Eko, a retailer from Kung Beang.
Chris of Nehas Liah Bing village said some supplies of subsidized fuel might have been wrongly distributed to companies operating in the region.
He said people in his village had noticed that the agency that regularly supplied gasoline and diesel fuel in the region also sold the fuel to a company there.
"We have no idea whether it is official or not. But for sure, they load and unload every month at the same place, where a ship that brings the supply is waiting on the pier," Chris said.
"We do hope this will end very soon so people here can again ride their motorcycles."
