Pertamina declares war against oil smuggling activities

State-owned oil and gas company Pertamina has declared a war against the growing activities of diesel oil smuggling, which has caused a massive loss to the government?s revenue from oil and gas sector.

In a press statement issued on Thursday, Pertamina?s president Baihaki Haki said the state oil and gas company would step up cooperation with the customs office to fight against the oil smuggling operation.

He also denied allegation that Pertamina had intentionally tried to cover up the smuggling activities. ?There will be a harsh sanction. Pertamina officials who are involved in the smuggling activities will be fired,? he warned.

Baihaki also said that the state oil and gas company would immediately terminate the contract of the ships chartered by the company to transport the fuel if they are involved in the smuggling activities.

Fuel smuggling activities have been going on for years as smugglers take the advantage of the gap between the prices of the heavily subsidized fuel sold at home and those of overseas. Pertamina has recently required industrial users to buy the diesel oil at a half of the international price of the fuel. But the increase is still not enough to curb the smuggling.

Pertamina?s senior officials have been accused of being involved in the activities because without their involvement it would be difficult to carry out such a crime. (*)