AKR says it supports one-price fuel policy

IDX-listed logistics company PT AKR Corporindo Tbk, which is also engaged in the distribution of petroleum fuel products in the country, said on Tuesday it is supportive of the government?s one-price oil fuel policy across the country.

?AKR has already expressed to the Government and to BPH Migas (downstream oil and gas authority) that it is supportive of this program and will sell as per Government regulations,? company Director Suresh Vembu said in a statement issued in response to earlier press reports that the government has demanded AKR to participate in the program or risk losing fuel distribution contracts obtained from the government.

Minister of Energy and Mineral Resources Ignasius Jonan was quoted by reports as saying Monday that he had summoned AKR top officials requesting the company to support the one-fuel price policy or risk being excluded from the list of companies assigned by the government to distribute subsidized fuel products.

?Currently, AKR at its 130 existing petrol stations across Java, Kalimantan, Sumatra and Bali is already selling the subsidized diesel at one price,? Suresh said. ?The requirement mentioned by the government is with respect to new locations in remote areas for which allocations will be granted.?

He said that AKR will work with the government to supply to these areas as per the requirement. ?Hence we are confident we will work with BPH Migas for the current allocation for the year 2017 and for the further mandates,? he added.

The government launched the one-price fuel policy late last year in a bid to create a single price for fuel oil process across the country including in remote regions. Under the program, the price of subsidized gasoline known as Premium is Rp 6,450 (48 US cents) per liter and subsidized diesel, known as Solar, is priced at Rp 5,150 per liter.

Editing by Reiner Simanjuntak