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Jakarta Post

Agency probes alleged abuses in single-fuel-price program

  • Rachmadea Aisyah

    The Jakarta Post

Jakarta   /   Wed, March 7, 2018   /   06:15 pm
Agency probes alleged abuses in single-fuel-price program Residents of Latu village, Seram Island, Maluku, stop at the area's first-ever gas station. (JP/Nethy Dharma Somba)

The Downstream Oil and Gas Regulatory Agency (BPH Migas) has said it is investigating alleged abuses in the implementation of the single-fuel-price policy, President Joko “Jokowi” Widodo's program to control high fuel prices in the country's remote and outer regions.

Some official fuel distributors have allegedly held back their stock from the public and instead resold it in bulk to stockpilers, who later sell it at a higher price, BPH Migas committee member on fuel supervision Henry Achmad said.

"In Sumenep regency, Madura, we found that even though the assigned single-fuel-price stations were not yet operating, their [one-price] fuel distribution had been going on for a while," Henry told reporters at a press conference Wednesday.

The cases took place in Sumenep's Sapudi and Raas islands, he added.

"The Premium category fuel was allegedly received by license holders of the fuel station, but they hoarded and resold it in oil drums to middlemen, who later offered it to residents at Rp 9,000 [65 US cents] to Rp 10,000 per liter," said Henry, noting that the designated price for Premium was only Rp 6,450. Diesel supplies were similarly bought up.

The practice was also discovered in Sangiang Island in Banten.

"We have followed up these issues with state-owned oil and gas company Pertamina as well as the relevant local governments [...] We will revoke the license of these distributors if they are found to be abusing their authority," said Henry. (bbn)