Pertamina takes disciplinary action against two kerosene sub distributors

The office of the state-owned oil and gas company Pertamina in Samarinda, East Kalimantan, has temporarily stopped supplying kerosene to two sub distributors as a form of disciplinary action for smuggling the heavily-subsidized commodity out of the country, the local Jaya Post daily reported.

The paper said that the two sub contractors had only distributed part of their kerosene supply to the public, and smuggled a large part of the stock.

"We have given sanction in the form of freezing temporarily the supply of kerosene to the two sub contractors," said head of the marketing department of the Samarinda Pertamina office Mohammad Noor.

Mohammad also said that the two sub contractors have sold the kerosene product at prices higher than the limit set by Pertamina.

Samarinda has been hit by shortage of kerosene, a basic commodity to many people in the area, several times. Reports have said that Pertamina's contractors and sub contractors were behind the shortage because the commodity had been smuggled out of the country. Reports have also said that the smuggling activity had been backed up by powerful people.

But Mohammad said that Pertamina had so far found no indication of the involvement of its distributing agents in the fuel smuggling activity.

Mohammad vows to work hard to ensure that kerosene supply to the public was not disrupted. Kerosene is regarded as politically sensitive commodity in Samarinda. A shortage of the commodity for a long period would instigate social and political unrest. (*)