AKR told to purchase automotive diesel from Pertamina
Tuesday, June 25 2019 - 03:36 AM WIB
The Ministry of Energy and Mineral Resources has advised IDX-listed fuel distribution and logistics firm PT AKR Corporindo Tbk to purchase automotive diesel from state-owned oil and gas firm PT Pertamina.
Kontan reported on Tuesday that AKR has continued suspending the selling of subsidized automotive diesel at its fuel retail stations as it is considered to be no longer profitable following the introduction in April of this year a new Minister of Energy and Mineral Resources Regulation on price formula of certain fuel products.
Director General of Oil and Gas Djoko Siswanto was quoted by the paper as saying that the ministry will facilitate a meeting between AKR and Pertamina to allow the former to purchase excess automotive diesel output of Pertamina. “As long as there is excess production, AKR can buy from Pertamina rather than import,” he said.
Meanwhile, Head of downstream oil and gas authority BPH Migas M. Fanshurullah Assa said that aside from economic factor, the move by AKR to suspend retail distribution of subsidized automotive diesel was also due to lack of supply of the fuel product.
As has been previously reported, AKR has suspended the retail distribution of subsidized automotive diesel since May 12. (*)