Chevron seeking licenses to enter retail fuel market

The United States-based Chevron Corporation, through its local subsidiary PT Caltex Oil Indonesia, is seeking for the government's permits to enter the country's retail fuel market, Investor Daily reported on Tuesday.

Tubagus Haryono, the chairman of BPH Migas, the government's agency in charge of oil and gas downstream industries, confirmed on Monday that the American company had submitted the application this week.

He refused to elaborate but sources said that Caltex had applied for two permits - one for the opening of retail outlets in Jakarta and other cities, and the other one for distribution of fuel products to corporate users. The fuel products to be sold by Caltex will include automotive diesel oil, industrial diesel oil, gasoline and aviation fuel.

According to the sources, Caltex had also expressed interest to take over the public service obligation (PSO) in the distribution of fuel in the country from state owned oil and gas company Pertamina,

BPH Migas earlier said that Pertamina would be no longer required to carry out the PSO beginning the end of this year to ensure that the company will be able to operate as a full business entity as stated in the new oil and gas law.

As the consequence of the removal of the PSO task, Pertamina's obligation to distribute the subsidized fuel supply in the domestic market would end in November this year. (*)