Caltex, Mobil, Shell ready to enter retail market
Friday, June 9 2000 - 04:30 AM WIB
Major oil producers such as Mobil Oil, Caltex and Shell are ready take over gasoline stations in the country's major cities to anticipate the liberalization of the oil downstream industry within the next three years, Neraca reported on Friday.
Soeroso Soemopawiro, the chairman of the association of oil and gas retailers, said in Jakarta on Thursday that the three companies had asked their help to find at least 100 gasoline stations as part of their strategy to enter the country's fuel retail market.
"They have approached as to find about 100 gasoline stations in any places in the country," he was quoted as saying. Soeroso said that the three companies seemed to be very aggressive and were ready to take over the existing gasoline stations at any places and at any prices.
Soeroso said that the presence of the foreign fuel retailers would certainly pose a threat to the association's members, which at present still relied much on the state oil and gas company Pertamina to support their operation.
Under the existing law, Pertamina holds exclusive rights in managing and operating the country's oil and gas exploration and production. The company also holds the monopoly in the sales of the fuel products in the domestic market but the retail sales are handled by appointed companies.
Under the free trade program agreed with other members of the Association of Southeast Asian Countries (ASEAN), the fuel retail market should be liberalized by the year 2003.
The government is also preparing a bill to amend the existing gas and oil law, which will among others, scrap Pertamina of its exclusive rights in the country's oil and gas sector. (*)