Reducing Individual Comfort

KOMPAS/NIKSON SINAGA

A number of logistics trucks queue up to the road at the Cemara Asri gas station, Medan, North Sumatra, Thursday (24/3/3033). A number of gas stations in North Sumatra have run out of subsidized biodiesel in recent days, resulting in queues of vehicles at a number of gas stations that still have stock..

After the cooking oil crisis, now comes the biofuel crisis. Other commodities may follow. The government must act. Consumers must also ensure security.

Businesses have asked the government immediately come up with a short-term solution to overcome the biofuel shortage in North Sumatra. The provincial economy could be paralyzed if the biofuel shortage is allowed to continue for a long period of time.

Inflation and a high-cost economy are also bound to occur. Freight transportation has almost become inoperable because biofuel has become unavailable on the Trans-Sumatra Highway as a result of the biofuel shortage. (Kompas, 27/3/2022).

Also read:

> Scarcity of Biodiesel Fuel Hampers Logistics Truck Operation

> Fuel Selling Price Continuously Reviewed

Subsidized fuel has been hard to find for more than eight days. The scarcity is widespread, seeing as that public fuel stations (SPBU) in the city and even on the city’s outskirts are also out of biofuel. Previously, many freight trucks went to the city center in search of biofuel.

Cooking oil and biodiesel are only two of the commodities that have seen price increases in the global market following Russia’s invasion of Ukraine. Many other options are unavailable due to reduced supply or increased distribution costs.

At the end of last year, the food industry warned that price increases, especially for food commodities, were inevitable. It also said that food was no longer cheap, and so increases in food prices were inevitable.

RENY SRI AYU ARMAN

Residents gather in front of a shop on Jalan Veteran, Makassar, Friday (25/3/2022) that sells bulk cooking oil for Rp 15,500/liter. Until now, cooking oil is still rare and expensive..

Indonesia is not alone in this. Egypt has even sought help from the International Monetary Fund (IMF) in stabilizing its currency, seeking a US$7.05 billion loan from the IMF. Egypt has also been affected by rising food prices because they are highly dependent on supplies from Russia and Ukraine.

We need to take cooking oils, biofuels and other commodities more seriously. Their impacts can extend to social and political issues. When the food price crisis might end is also uncertain. The crisis is likely to grow if the Ukraine war is prolonged.

Indeed, the government is expected to take various security measures. Social aid and market operations need to be carried out on a large scale. Those actors taking advantage of and profiting from the situation while others suffer need to be dealt with.

Also read:

> Regulating the Market

On the other hand, society and consumers need to look at the reality from a broader perspective. A wise response is needed to address the decline in production of some commodities amid the uncertainties over the war in Ukraine. In addition to entrusting the government to respond to the shortages, we must also do our part as well.

For those of us who are fortunate, we should purchase just what we need and not hoard commodities. Reducing individual consumption can help prevent further price increases. We must be willing to reduce individual comforts.

This article was translated by Kesya Adhalia.