BPH Migas discovers significant amount of subsidized fuel fraud

Downstream oil and gas regulatory body BPH Migas said that the misappropriatin of subsidized fuel reached about Rp 111.25 billion in value during the January ? April period of this year.

The agency?s chairman Andy Noorsaman Sommeng said in Jakarta on Tuesday that the agency?s special team had discovered misappropriation of 619.3 kiloliters of diesel oil worth Rp 5.96 billion, 24.8 kiloliters of Premium gasoline worth 223 million, 600 liters of kerosene worth Rp 5.4 million and 250,100 kiloliters of Marine Fuel Oil worth Rp 105 billion during the four month period.

"The total value of the misappropriation of subsidized fuels through smuggling activities reached Rp 111.25 billion during the first four months this year,? he said.

In addition, BPH Migas had also reported 218 cases of violations in the distribution of 586,047 liters of subsidized fuels with a total value of Rp 5.49 billion. They included 360,336 liters of diesel fuel with the value of Rp 3.43 billion, 130,103 liters of kerosene worth Rp 1.17 billion and 95,568 liters of Premium worth Rp 890 million.

Andy said that BPH Migas, in cooperation with the police, seized KMT Mitra Kaltim, a landing craft tank (LCT) vessel, on March 7 in East Kalimantan for allegedly involved in misappropriation of subsidized fuel.

In addition, in April 12, the agency had also seized MT Bagus Se1atan ship owned by PT Landasindo Sahu Baruna Jaya in Tanjung Perak port, Surabaya for being allegedly involved in the similar offense.(*)