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Equalizing Fuel Prices

Translator

Editor

24 October 2016 05:26 WIB

Petrol station, or gas station. Image: TEMPO/iqbal lubis

TEMPO.CO, Jakarta - The government`s effort to equalize fuel prices in all regions is good news.


One day, fuel prices in Papua and in Java will no longer be different.


As a producer and distributor of fuel, state-owned gas and oil company PT. Pertamina should have various ways to make fuel price the same all over the country.


Equalizing fuel price at a national level is not a matter of gain-loses.


The government’s policy that should be implemented should be seen as an effort to improve prosperity.


Many residents are economically underprivileged such as in Papua and in other regions Papua because of high price of fuel for years.


Distribution channel of fuel in isolated areas are generally long and widding.


For Papua, which does not have fuel depot yet, the fuel is brought from the shortest depot in Balikpapan, East Kalimantan.


The problem is, fuel from Balikpapan cannot be directly transported to Papua but has to be shipped to a fuel depot in Wayame, Ambon, Maluku.


From Wayame, fuel allocated for Papua is distributed by ships and planes.


In transporting fuel, problems often arise, such as weather disturbances. Departure of ships and planes are thus delayed.


The risk is that supply is hampered and fuel price in Papua can skyrocket until Rp 100,000 per liter.


Such incident rarely happens in Java.  Premium price is guaranteed to be normal, which is Rp 6,450, and solar price at Rp 5,150 per liter because the distribution is virtually without hindrances.


Pertamina should prepare a number of solutions. For example, changing the regulations and releasing several parts of the company’s profits.


Pertamina is indeed demanded to gain profits. However, to accelerate development in Papua and other isolated regions, the business orientation should be loosened for the time being.


Allocation for subsidy of fuel distribution in Papua reaches Rp 800 billion per year. If it turns out to be still lacking, Pertamina should not hesitate to add it.


As for the use of planes to transport fuel, Air Tractor, is clearly not the only one that it as.


This armada is indeed needed to penetrate regions that have land access.


Air Tractor is suitable to supply fuel in mountainous regions in Papua such as Puncak regency, Yalimo regency, and Intan Jaya regency.


For regencies that have rivers and estuaries such as Mamberamo Raya, it is appropriate to use planes.


Depots that functions to maintain the security of fuel supply in hinterlands should also be provided.


What is also important is to add the number of agents distributing oil and solar. They certainly have to be selected.


Distributors who have commitment not to play with fuel are the ones that should be selected.


Equal fuel price is expected to boost economic development in the regions.


Infrastructure development can grow rapidly.


Residents living in hinterlands who have not enjoyed electricity can soon be served.


What is equally important is that this program should be monitored.


It is Pertamina that will bear the losses if this program fails.


(*)




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