The shortage of subsidized fuels such as Pertalite and diesel in various regions exposes the poor state of national energy management. Long queues of vehicles at public gas stations reflect the superficial nature of quota planning, the chaos in risk mitigation, and weak oversight.
Hiding behind the pretext of efficiency and budget savings, the government has failed to anticipate the domino effect of its own policies. After strangling supply under the guise of reducing energy subsidy spending, the government neglected to control consumption. This year, the Pertalite quota was slashed to 29.26 million kiloliters, a 5.9 percent decrease from the previous year. By June, 47.68 percent, or almost half of the quota, had been used up.
The problem escalated when Pertamina raised the price of the non-subsidized Pertamax fuel by as much as 32.1 percent. The decision to raise the price of Pertamax without tightening consumption restrictions on Pertalite was a fatal blunder. The outcome was predictable: the migration of upper-middle-class consumers. Daily Pertalite consumption consequently surged by 9.4 percent – an average increase of 7,129 kiloliters per day – while Pertamax consumption fell by 18 percent. The failure to control Pertalite consumption means the established quota will be exceeded before the end of the year.
Amid this situation, the government and Pertamina continue parroting about the supposedly secure stocks of fuel. This narrative clashes with the reality on the ground in various regions. In Palembang, South Sumatra, lines of trucks and private vehicles stretched for more than 2 kilometers at one point. In Medan, North Sumatra, many gas station operators are left twiddling their thumbs as their daily supply has been cut to half of the normal allocation. Fishermen are forced to remain at shore due to the scarcity of subsidized diesel fuel. Low-cost transportation options such as motorcycle taxis and public transit are also at risk of being unable to operate if Pertalite runs out.
The 15-day stock level that forms the basis of the government's claims is very fragile in reality, because it falls far short of the 90-day minimum standard set by the International Energy Agency (IEA). It is about time the government comes up with an honest assessment of the state of fuel stock. After all, transparency is key to crisis mitigation. The government must disclose the basis for calculating fuel subsidy quotas by region, along with the actual distribution figures. Without data transparency, public suspicion of irregularities, hoarding, or misallocation could trigger unrest.
One crucial step that cannot wait any longer is ensuring proper regulation. The government must immediately finalize the revision of the presidential regulation on the supply, distribution, and pricing of fuel, which has been discussed since the Joko Widodo administration. The lack of clarity regarding the criteria for consumers eligible to purchase Pertalite and diesel has allowed subsidized fuels to be exploited for years. Luxury and industrial vehicles are still freely consuming a resource that should be reserved for low-income citizens and public transportation.
President Prabowo Subianto cannot afford to let his ministers repeat the "firefighting" management pattern: only springing into action after a crisis has already taken place. A comprehensive audit is needed toward quota setting, refinery reliability, imports, and downstream oversight. Without the will to radically address the root causes of the problem, national energy security is just empty rhetoric.
– Read the complete story in Tempo English Magazine
Source: https://en.tempo.co/read/2116029/energy-security-pipe-drea