President orders police chief to closely watch fuel supply

President Susilo Bambang Yudhoyono has ordered the national police chief General Sutanto to closely watch the possible interruption of the fuel supply amid reports of growing fuel smuggling activities in the country's major cities, Kompas reported on Monday.

The order, made by the president before his departure to the United States for a seven-day visit, has been regarded as very crucial to cope with the sharp increase in fuel smuggling activities in the country.

The national police chief General Sutanto confirmed the President's order and said that the police would carry out maximal efforts to halt the smuggling activities and to take a serious action to whoever involved in fuel smuggling activities.

Last week, a number of Pertamina's officials were arrested for their alleged involvement in a massive crude oil theft and smuggling activities. The arrested Pertamina's officials were believed to have played a crucial role in the stealing and smuggling of crude oil from Pertamina's offshore crude oil receiving terminal in Lawe Lawe, East Kalimantan.

Kompas also reported that illegal sales of diesel oil was also on the rise in several parts of East Kalimantan especially after the government removed the subsidy of the diesel oil sold to industries.

With the new policy, industries including mining companies should buy diesel oil at Rp 5,400, far higher than about Rp 2,400 at Pertamina's fuel stations. This has encouraged illegal sales of diesel oil in the province, the home of hundreds of mining companies. Through the illegal traders, the mining companies can buy the diesel oil at between Rp 3,800 and Rp 4,000 per litter.

The illegal sales of the diesel oil have resulted in serious shortage of the diesel oil supply in the province. (*)