Goods Deliveries Stalled as Fuel Restriction Proceeds

TEMPO.CO, Jakarta - The Jakarta branch of the Organization of Land Transportation Owners (Organda) chairman Safruhan Sinungan said that the restriction on the distribution and sales of subsidized fuels will disrupt delivery operations throughout the country. "Most of the trips usually take around a day to complete, now it takes up two to three days," he told Tempo on Wednesday, August 27, 2014. 

The disruption to fuel supply is expected to jack up delivery prices by 25 to 30 percent. The extra fees are needed to cover food and accommodation costs for drivers that are stuck in massive queues at gas stations to refuel their vehicles en route to their destinations.

Safruhan said his team had yet to calculate the actual losses stemming from the recently imposed restrictions. Apart from increasing the cost of deliveries, it also affects the drivers' incomes. "Especially casual, freelance drivers. Those working full-time are less likely to be affected," he said. 

State oil and gas company Pertamina has said in a statement that the remaining quota of subsidized fuels stood at 15,5 million kiloliters of the 46 million kiloliters earmarked by the 2014 State Budget. The remaining quota for 2014 comprised 10 million kiloliters of Premium (a brand of petrol marketed by Pertamina), and five million kiloliters of diesel fuel, locally known as Solar. 

The only way to ensure that the quota would last until the end of 2014 is by rationing supply to public gas stations. As a result, some gas stations have completely depleted their reserves of subsidised fuels—causing massive queues at other stations. 

TRI ARTINING PUTRI