JEDDAH, 30 January 2004 — Saudi Aramco has cut back on its kerosene production and has set up new standard procedures for distributors. The company has specified one kerosene delivery per month until the checks confirming the way it is being sold are carried out.
Aramco has taken this step after the practice of diluting gasoline with kerosene at local gas stations and selling it as gas to customers at standard prices was discovered. Some gas stations, after diluting gasoline with kerosene, have been selling the mix for up to 90 halalah per liter.
A number of distributors said that kerosene is no longer available in the market and that it can be obtained from cities outside Jeddah — Madinah, Makkah or Taif. These cities have less industry than Jeddah and there is a lower consumption of kerosene.
Distributors have increased the price of kerosene by 40% to 65 halalah from 43.5. Distributors, due to the shortage, have justified the increase.
A local baker, who normally uses kerosene for his oven, has had to modify the pipes in order to use diesel, saying that since the start of 2004 kerosene is hard to find except in the black market.