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Subsidized diesel shortage hits trucking industry
Truckers have been waiting for up to 24 hours to refill at fueling stations, causing disruptions in domestic supply chains.
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Trucks line up for subsidized diesel, causing a traffic jam at Palapa gas station in Padangpariaman, West Sumatra, on March 16. (Antara/Iggoy el Fitra)
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subsidized diesel shortage has disrupted trucking operations in many parts of Indonesia, as recovering domestic fuel demand meets rising global oil prices.
Local news outlets have reported long lines of trucks at fueling stations operated by state-owned oil giant Pertamina across the archipelago, with drivers saying they have had to wait for up to 24 hours for the diesel fuel commonly known as “solar”. Trucking associations say the problem is particularly acute in Sumatra, Kalimantan and Sulawesi.
The Indonesian Truck Operators Association (Aptrindo) said on Tuesday that the supply crunch meant drivers either waited longer to refuel or got less fuel than needed, forcing them to refuel more often than usual, causing delays.
Aptrindo deputy chairman Kyatmaja Lookman said that this month was critical for delivering goods ahead of the expected Ramadan and Idul Fitri consumption spike. The fasting month begins this year in April.
“It is almost Lebaran, and in less than a month trucks will be limited due to mudik [exodus]. If the government added to the [subsidized diesel] quota, there would be no queue,” said Aptrindo deputy chairman Kyatmaja Lookman on Tuesday.
Trucks, which are the main users of the nation’s subsidized diesel, form the backbone of the domestic freight industry. Road transportation accounts for 70 to 80 percent of the freight volume moved in the country, according to Mordor Intelligence data cited by the Organization of Economic Cooperation and Development (OECD).
Regulations state that subsidized diesel may be used in buses, trains, certain ships and private and commercial trucks, except those with more than six wheels carrying mining or palm oil goods.
