Rangga D. Fadillah, The Jakarta Post, Jakarta | Fri, 05/25/2012 9:43 AM
State-run oil and gas company PT Pertamina announced that in the first quarter of this year, it distributed 1.23 metric tons (MT) of subsidized liquefied petroleum gas (LPG), packaged in 3-kilogram canisters, exceeding the quota by 4.9 percent.
“If this trend continues, the distribution of 3-kg LPG may reach 3.75 MT or 3.9 percent above the quota set by the government,” he told reporters at a press conference on the sidelines of the 36th Indonesian Petroleum Association (IPA) Convention and Exhibition in Jakarta on Thursday.
He argued that the breach, which took place in the first three months of 2012, strongly indicated a violation in the distribution of subsidized LPG. Pertamina was committed to strengthen the supervision of its distribution to prevent a misappropriation from happening in the future, he added.
In most cases, the perpetrators moved the LPG from 3-kg canisters into bigger canisters, predominantly 12 kg, and then sold it at a higher price, Hanung revealed.
“The re-arrangement of the distribution system aims for the implementation of a closed distribution system,” he emphasized.
A closed distribution system means that people who are eligible to buy subsidized LPG will be given cards identifying that they are legal receivers of the LPG. The system aims to ensure that only those who deserve the subsidy can buy the LPG.
Hanung said that Pertamina would re-register LPG bases and agents across the country to distribute LPG, therefore the exact amount of LPG distributed could be better controlled.
For the oil-based fuels, he said that despite demand for more supply of subsidized fuels (premium fuel, diesel fuel and kerosene) in several regions, Pertamina could only distribute the amount approved by the government as stipulated in the 2012 revised state revenues and expenditures budget.
We understand that the quota for several regions is indeed below the potential demand, but Pertamina has to comply with the government’s decision,” he explained.
As reported earlier, four Kalimantan governors had demanded the government increase the quota for the island or they would stop delivering coal to Java, which would disturb electricity generation in many power plants.
According to Pertamina’s data, Kalimantan has a total demand of around 3.5 million kiloliters (KL) of subsidized fuels comprising 2 million KL of Premium, 1.2 million KL of diesel fuel and 286,000 KL of Kerosene.
However, Kalimantan only receives a quota of 3.03 million KL, comprising 16 million KL of Premium, 1.03 KL of diesel fuel and 396,963 KL of kerosene.
As of May 21, the distribution of subsidized fuels in Kalimantan was 12 percent above the quota,” Hanung revealed.
http://www.thejakartapost.com/news/2012/05/25/pertamina-suspects-foul-play-lpg-quota-breach.html
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