Long queues in Jakarta as motorists switch to subsidised fuels amid price hike

JAKARTA – The recent price increase of non-subsidised 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 in Indonesia. On June 10, Pertamina Patra Niaga, the commercial and trading arm of state energy giant Pertamina, raised the prices of unsubsidised RON92 Pertamax from 12,300 rupiah (S$0.89) to 16,250 rupiah per liter as well as RON-95 Pertamax Green from 12,900 rupiah to 17,000 rupiah per liter. 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 10,000 rupiah per litre, despite concerns among motorists the fuel may affect engine performance. “The price rise may be only 3,000 rupiah to 4,000 rupiah per litre, but (ride hailing drivers’) expenses have risen sharply because we

also have to cover motorcycle maintenance and other costs,” Samsudin said on 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 non-subsidised to subsidised fuels is inevitable after the significant price hike, argued Bhima Yudhistira of the Centre of Economic and Law Studies. 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 non-subsidised fuel products, such as RON-98 Pertamax Turbo and diesel fuel Pertamina Dex, in April following disruptions on global

oil supply triggered by the US-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 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 subsidised fuel supplies. Pertamina Patra Niaga ensured the supply for Pertalite was still enough to meet national needs. “Nationally, we have adequate stocks and keep optimising the distribution so we can fulfill the people’s needs well,” Pertamina Patra Niaga corporate communication VP Kitty Andhora said on June 27, as quoted by Indonesia’s national news agency 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/ASIA NEWS NETWORK

Jakarta, fuel price hike, Pertamina Patra Niaga, Pertalite, Pertamax, Pertamax Green, subsidised fuel, long queues, online motorcycle taxi, Samsudin, Bhima Yudhistira, Tulus Abadi, Kitty Andhora