BPH Migas finds irregularities in fuel distribution

BPH Migas, the regulatory body for oil and gas downstream industry, has found irregularities in the distribution of subsidized fuels from Pertamina's oil storage in Wayame, Maluku to Timika in Papua, causing a potential loss to the state of about Rp 1.2 billion a month, Kompas reported on Monday.

Eri Purnomohadi, an executive of BPH Migas, said in Jakarta that the fuels shipped to Timika were unloaded in Kaimana on the way to Timika before being shipped again to its destination.

"It was strange because the shipment from Wayame to Timika can be carried out directly," he said.

The transportation rate from Kaimana to Timika was Rp 500 per liter, much higher than the rate between Biak to Nabire which was only Rp 200 per liter although the shipping distance was three times longer than that of Kaimana to Timika.

According to information from the shipping industry, the rate between Kaimana to Timika is only Rp 100 per litter. (*)