Bali Grapples with Gas Shortages: Causes and Community Impact

For the past two weeks, Bali has been experiencing a shortage of 3 kg LPG cylinders, with the most severe impacts felt in Denpasar and Badung Regency.

Residents of these areas have been waiting in long queues outside petrol stations, hoping to buy gas at subsidized prices using their national identity cards.

Even at higher prices from private retailers, obtaining gas has also been nearly impossible due to stock shortages.

At the retailer level, prices have surged to 30,000 IDR, significantly higher than the usual subsidized price of 18,000 IDR and the private sector's range of 20,000-25,000 IDR.

The gas shortage and resulting price hikes pose a significant challenge for households and local businesses alike. Given the essential role of 3 kg LPG cylinders in cooking and heating water, the impact on daily life is profound.

Small businesses, such as laundries, rely on gas-operated machinery due to its cost-effectiveness. For example, a typical small laundry requires two gas cylinders daily to power a single tumble dryer. However, with the ongoing shortages, many small businesses are forced to operate at reduced capacity or halt operations altogether.

There has been speculation that the shortages are caused by two long holiday weekends and the World Water Forum (WWF) held in Bali from May 18 to 25, 2024. However, the Bali Department of Manpower (Disnaker) and the Energy and Mineral Resources (ESDM) have conducted a review and identified the actual causes behind the shortage of 3 kg LPG cylinders.

"Based on information obtained from Hiswana Migas and Pertamina, there has been no reduction in the 3 kg LPG quota for the Bali region in 2024. However, this year there has been an increase in the number of distribution bases," said Ida Bagus Setiawan, Head of Bali's Disnaker ESDM.

The LPG shortage was found to be linked to the addition of nearly 900 bases. "As the number of bases increased, the allocation each base received decreased," he explained.

Previously, the Bali provincial government had addressed shortages caused by the increase in distribution bases by channelling subsidized gas from areas with sufficient supply to those experiencing shortages, such as Denpasar.

The Bali provincial government is currently liaising with relevant stakeholders with the aim of resolving the current shortages as swiftly as possible.

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