Foreign gas station unsure about biofuel

Governor Sutiyoso has instructed all gas stations in Jakarta to sell compressed natural gas (CNG) and a biodiesel blend to support the city?s ?blue sky? campaign, The Jakarta Post reported on Saturday.

State oil and gas company Pertamina is set to supply the biodiesel - a blend of petroleum diesel with oil extracted from plants - which will be sold at its four gas stations in Jakarta from Saturday for RP 4,300 (48 U.S. cents) per liter.

However, foreign gas stations, which entered the country?s gasoline market last year, have not committed to selling the biodiesel blend.

?We?re currently investigating the supply situation for bio components. We?re doing a regional study for this,? Surinderdeep Singh, the retail manager for Shell companies in Indonesia, told The Jakarta Post on the sidelines of the opening ceremony of its fourth outlet on Jl. Gatot Subroto, South Jakarta, on Friday.

?If we enter Indonesia with biofuel as a product, we have to ensure the security of its supply. We don?t want to come in for a while and pull back, and then say, ?Sorry, no biodiesel this month?,? he said.

Shell, he said, basically supported the use of biofuel and any other way of limiting fuel subsidies.

However,?Like any other product, we will be interested if it is profitable,? the president of Shell?s boards of commissioners in Indonesia, Gatot Kariyoso, told the Post.

?If there is a biodiesel supplier here, we have to find out first whether the quality of its product meets our standards, the quantity is consistent and it can be sold at a competitive price.

?We can?t promise anything as our study might say we?re not ready to enter the market,? Singh said, adding that he was happy to see Pertamina would soon start selling the biodiesel blend.

Singh said the company was actually dealing with the same issue and the same opportunity in other countries, such as Malaysia and Singapore.

?Biofuel is usually supported by the government. We already sell biofuel in many parts of the world, in Australia, Thailand and parts of Europe,? he said.

When asked about its commitment to supporting the city?s efforts to reduce air pollution, Singh said biofuel was a good alternative to hydrocarbon fuel.

But, he said, whether it was environmentally friendly depended on the vehicle it powered, the maintenance of its engine and the type of lubricants used.

?We support the administration?s policy to reduce pollution but it must be remembered that being environmentally friendly takes more than just biodiesel,? he said. (*)