5 coys eyeing subsidized fuel distribution business

Downstream watchdog BPH Migas said on Wednesday that five companies have responded to its query and expressed readiness to participate in upcoming tender to distribute subsidized fuel supply for 2008.

Chairman Tubagus Haryono said the five companies are: AKR Corporindo, Sigma Rancang Persada, Elnusa, Petronas and Pertamina.

Total, Shell and BP had yet responded, he said.

BPH Migas has set up a verification team tasked to evaluate technical and administration aspects of the candidates. According to Erie, in order to become eligible to participate in the nedre, companies must be able to guarantee 20 days of supply and has distribution outlet in at least two distribution areas. BPH Migas divides distribution area into four: (1) Sumatra, (2) Java and Bali, (3) Kalimantan, Sulawesi, Maluku and Papua and (4) East and West Nusa Tenggara.

BPH Migas Director of Fuel Erie Soedarmo the team would complete evaluating candidates by November and winner(s) might be appointed December.

A BPH Migas official recently said that Pertamina, who had been appointed single distributor since downstream market was liberalized in 2005, might eb re-appointed as single distributor for 2008 without tender if no other candidate could meet technical and administrative requirements.

2008 subsidized fuel volume is set up at 35.8 million kiloliters, which consist of 16.95 million KL gasoline, 7.8 million KL of kerosene and 11 million kiloliters of HSD. Winning distributor will work for a fee. (godang)