AKR named co-distributor of 2011 subsidized fuels

Oil and gas downstream sector regulator BPH MIGAS has named Jakarta-listed firm PT AKR Corporindo co-distributor of subsidized petroleum-based fuels for next year along with oil and gas company PT Pertamina (Persero).

Chairman Tubagus Haryono said on Wednesday that in the tender to get the lienses to distribute the subsidized fuels, AKR offered lower ?Alpha? than other tender participants, including Malaysian firm Petronas, local firm Elnusa and British-Dutch firm Shell.

The term "Alpha" refers to distribution costs and margin payable by the government for the service of distributing subsidized fuel.

AKR was awarded the right to sell a total of 38.690 kiloliters a year of Mogas (RON 88) in Binjai, Langkat areas of North Sumatra; Tapin regency in South Kalimantan; and West Kutai, Kutai Kartanegara regencies in East Kalimantan.

AKR is also entitled to distribute high speed diesel (HSD) totalling 63.875 kiloliters a year in Medan, Binjai, Deli Serdang in North Sumatra; Lampung, South Kalimantan, West Kalimantan, East Kalimantan and South Sulawesi. (godang)