Balongan refinery broken, fuel scarcity hits Java, Bali

Minister of Mines and Energy Susilo Bambang Yudhoyono said that fuel scarcity in a number of areas in Java and Bali has been caused by the breakdown at Pertamina's Balongan refinery plant in Indramayu, West Java.

"Our refinery in Balongan recently broke down, and this disrupted distribution of fuels to a number of areas in Java and Bali and resulted in fuel scarcity in those areas," Susilo Bambang said in Nusa Dua on Tuesday.

The Balongan refinery has not been functioning properly since last week.

Susilo Bambang added that the fire that hit an oil refinery in Kuwait also affected fuel distribution in Java and Bali as fuel consumption for these areas has been supplied from Balongan and imports from Kuwait.

To avoid further fuel scarcity, Susilo Bambang the government has ordered state oil firm Pertamina to repair quickly the Balongan refinery. He said the repair work is expected to be completed by July 21, and on July 24, the refinery should operate normally again.

However, Pertamina spokesman Ramli Dja'far said that the Balongan refinery was shut down, not because of damages but for a routine overhaul. He said the refinery could operate at full capacity starting July 21.

He said fuel scarcity in East Java and Bali was caused more by an increase of fuel demands in the areas because of school holidays. And the increase was not anticipated well by Pertamina's East Java distribution center in Surabaya.

Ramli said fuel supplies for the two provinces had been increased with the recent unloading of fuels from Pertamina's fuel tanker. He said fuel scarcity in the two provinces would soon be over. (*)