TEMPO.CO, Jakarta - The Downstream Oil and Gas Regulatory Agency (BPH Migas) said that the smuggling of diesel fuel, locally known as solar, is still happening in a number of districts. The agency said there are two factors causing the persistence of this practice.
The first reason, BPH Migas chief Fanshurullah Asa said, is the price disparity between subsidized diesel fuel and the non-subsidized type sold to industries.
Today, he said, subsidized diesel fuel is sold for Rp5,150 a liter, while non-subsidized diesel fuel is sold to industries at Rp9.500 per liter.
With the Rp4,350 price difference, there is a potential that industries are buying subsidized diesel fuel, he said.
The second factor is the distribution of subsidized diesel. According to regulators only supervise the transportation and distribution until depots—not all the way to fuel-filling stations.
"So, there are possibilities that smuggling would happen during transportation from depots to gas stations," he said.
On Tuesday, August 28, the Coordinating Minister for Politics, Law, and Security Wiranto revealed that the smuggling of Solar is still happening. This crime, he said, happens during the drilling process, the oil processing, and transportation.
The last known case was in February this year when the Banten Police thwarted the smuggling of 8,000 liter Solar fuel in Serang.
To stop the smuggling, Wiranto has formed a special task force to combat illegal oil and gas practices.
Fanshurullah said BPH Migas would have a role in this task force, specifically for controlling smuggling in the downstream sector. "This task force involves all stakeholders," he said
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