Veep orders Pertamina to overcome kerosene supply shortage

Jakarta (Antara News) - Vice President Jusuf Kalla ordered state-owned oil company Pertamina here on Monday to immediately overcome its kerosene supply shortage to several parts of the country.

The vice president summoned the head of the oil and gas upstream business management board (BPH Migas) Tubagus Hariono and Pertamina`s director for marketing and business affairs Ahmad Faizal at his office to discuss the problem.

Tubagus said his side had calculated the consumption of kerosene, while Pertamina had also expressed readiness to carry out the vice president`s instruction.

Ahmad Faizal said "starting tomorrow Pertamina will increase its kerosene distribution by 100,000 kiloliters until December." He said he hoped the increase would meet the shortfall. He said the kerosene will be distributed to the public and small subsidizied industries.

He also hoped that the big industries would buy the commodity at market price.

About the recent shortage of kerosene supply, he said Pertamina had been trying to control the distribution to meet the set amount of 9.9 million kiloliters, down from 10 million kilolitres, set in the 2006 revised national budget.

The government has reduced the distribution from 10 million kilolitres to 9.9 million kilo itres in view of the declining consumption of the commodity.

He said to carry out vice president`s instruction, Pertamina would immediately distribute the amount kerosene set in the 2006 national budget.

Regarding the subsidy he said it would depend upon the world market price. "We cannot tell for certain but it may range from Rp3,000 to Rp4,000 per liter," he said.

He said kerosene supply in the country was enough for 29 days but so far the volume to be distributed was limited.

"Tomorrow morning we will start to meet the initial quota. The vice president called on to prioritize the meeting of the ordinary people`s need for kerosene," he said.(*)
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