JAKARTA: The recent price increase of nonsubsidised fuels has forced commuters and high-mobility workers to switch to subsidised fuels in an attempt to cut transportation costs, triggering long queues at gas stations in Jakarta.
On June 10, PT Pertamina Patra Niaga, the commercial and trading arm of state energy giant Pertamina, raised the prices of unsubsidized RON-92 Pertamax from Rp 12,300 (69 US cents) to Rp 16,250 per litre as well as RON-95 Pertamax Green from Rp 12,900 to Rp 17,000 per litre.
The prices for subsidised Pertalite and Biosolar remain unchanged. Before the price hike, ojol (online motorcycle taxi) driver Samsudin from Cipayung, East Jakarta, regularly filled his motorcycle with Pertamax, believing it offers better protection for his vehicle’s engine.
But after the price rose, he switched to Pertalite, currently priced at Rp 10,000 per litre, despite concerns among motorists the fuel may affect engine performance.
“The price rise may be only Rp 3,000 to Rp 4,000 per litre, but [ride hailing drivers’] expenses have risen sharply because we also have to cover motorcycle maintenance and other costs,” Samsudin said on Friday (June 26) near a Pertamina gas station in Kampung Rambutan, East Jakarta.
“I switched to Pertalite to keep my costs down. My income remains flat, while Pertamax prices have soared,” the 52-year-old driver added.
With the mass switch prompting longer lines at gas stations, Samsudin leaves home before dawn so he can avoid the queue and spend more time picking up fares.
When The Jakarta Post visited several gas stations in East Jakarta, South Jakarta and Bekasi, West Java, long lines of motorists waiting to fill up their motorcycles with Pertalite stretched to the stations’ entrances. Meanwhile, pumps for Pertamax were largely empty.
The massive shift from nonsubsidized to subsidized fuels is inevitable after the significant price hike, argued Bhima Yudhistira of the Center of Economic and Law Studies (CELIOS).
Beyond the long queues, he warned that the price hike would lower the productivity of mobile workers and further erode household disposable income.
Irsyad, a 28-year-old office worker from Tangerang, Banten, is among those whose monthly budget has been strained because of the fuel price hike. To save money, he occasionally switches to Pertalite and cuts back on trips.
“I know the fuel price hike was unavoidable given current global geopolitical tensions,” he said.
“But if only the government had better prepared, such a step might have been prevented.”
Pertamina raised the prices of other nonsubsidised fuel products, such as RON-98 Pertamax Turbo and diesel fuel Pertamina Dex, in April following disruptions on global oil supply triggered by the United States-Israeli war on Iran that broke out in late February.
After saying the price hike was inevitable because of the conflict in the Middle East, Indonesian Empowered Consumer Forum (FKBI) chair Tulus Abadi warned the increase would further weaken middle-class purchasing power while accelerating the massive shift toward subsidised fuel.
He urged the government to anticipate the Pertalite shortage by, among other efforts, expanding subsidies for public transit to encourage more commuters to leave their private vehicles at home and ease pressure on subsidized fuel supplies.
Pertamina Patra Niaga ensured the supply for Pertalite was still enough to meet national needs.
“Nationally, we have adequate stocks and keep optimizing the distribution so we can fulfill the people’s needs well,” Pertamina Patra Niaga corporate communication VP Kitty Andhora said on Saturday, as quoted by Antara.
The company also operates fuel terminals 24 hours a day in regions with a high demand for subsidised fuel and makes sure the fuel supply arrives to gas stations early in the morning to prevent long lines later on in the day. - The Jakarta Post/ANN
