Pertamina to change color of diesel fuel for industries

The state oil and gas company Pertamina would change the color of the diesel oil meant for the country?s industries with an aim to curb fuel smuggling to overseas, company president director Baihaki Hakim said on Monday.

Baihaki did not mention the new color of the diesel oil to be supplied for industries, only saying that it would be different from the color of diesel oil for other consumers. Also, he did not say when that move would be taken.

The company?s move will add to its measures already taken for curbing diesel oil smuggling which had caused a massive loss to the government?s revenues from the oil and gas sector.

In early August, following reports about rising smuggling of diesel oil, Baihaki issued a press statement that Pertamina would step up cooperation with the customs office to stop diesel smuggling activities.

The announcement came out only a couple of days after Batam?s customs office apprehended a fuel tanker, MT Pan Oil 4, because it had been spotted smuggling 400 tons of subsidized diesel fuel out of Indonesia.

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 meant for overseas markets.

A few months ago, Pertamina increased the price of diesel fuel for industries, hoping that that move would help curb smuggling. But, it turned out to be not enough for curbing the illegal activity. (godang)