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Police crack down on fuel fraud amid LPG scarcity
The National Police have begun a sweeping operation to crack down on hoarders and fraudsters taking advantage of the sudden shortage in 3 kg canisters of subsidized LPG, triggered by a now-reversed government ban on retail sales.
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People stand in line on Feb. 3, 2025, to purchase full 3-kilogram canisters of subsidized liquefied petroleum gas (LPG) at a distribution point in Cibodas district, Tangerang, Banten. (Antara Foto/Putra M. Akbar)
T
he National Police are intensifying efforts to crack down on individuals and businesses hoarding cooking gas or running a fraudulent fuel blending scheme amid a nationwide shortage of 3-kilogram canisters of subsidized liquefied petroleum gas (LPG).
The Central Java Police arrested on Wednesday a 23-year-old resident of Kentengrejo village in Purworejo regency, allegedly over hoarding hundreds of subsidized 3 kg LPG canisters for transferring its contents into 12 kg canisters and reselling the fuel to customers at full market price.
The provincial police’s special crimes head, Sr. Comr. Arif Budiman, said the man, identified only as ERE, was suspected of using modified gas regulators to perpetrate the fraud.
"We received a report about an illegal fuel blending operation over the weekend and immediately began investigating. We discovered that the suspect was transferring the fuel in a nonstandard manner," Arif said on Wednesday.
Police confiscated 231 LPG canisters of various sizes and 90 modified regulators from the suspect’s distribution outlet.
The government subsidy for 3 kg LPG canisters covers around 70 percent to set a per-kilogram price of Rp 4,000 (24 US cents). These small, bright green canisters of subsidized LPG, known colloquially as “melon” for their resemblance to the fruit, are intended exclusively for low-income households and small businesses.
The larger sizes weighing 5.5 kg and 12 kg, which often come in hot pink and blue canisters, are not subsidized and retail for between Rp 16,000 and Rp 17,000 per kg.
