Govt adds one more option in tender of subsidized fuel

BPH Migas, the regulatory body for oil and gas downstream industries, has added one more option in the tender of subsidized fuels which would allow it to name more than one company to sell subsidized fuel in an area, Kontan reported Thursday.

 

Adhi Subagio, an executive of the agency, said in Jakarta Wednesday that under the new option, the agency would appoint a company to sell subsidized fuels in accordance with its capacity.

 

"For example, Pertamina can sell 90 percent of the subsidized fuel for certain area, while Shell and Petronas can be named to sell the remainders," he said.

 

This option is the most attractive than the first four options which have been earlier announced, he said. The first four options include the appointment of a subsidized fuel distributor based on the profit margin from the standard price under Mid Oil Platts Singapore (MOPS) and on profit margin from operating costs as well through the appointment of importer, and through a direct appointment.

 

He said that the agency would hold a further meeting with related parties before deciding the right option in tendering the rights to sell the subsidized fuel. (*)