Govt asked to retain Pertamina?s rights in selling subsidized fuels

BPH Migas, the regulatory body for downstream oil and gas industry, should not auction the distribution rights of subsidized fuels in the country because sales of the fuels should remain under the state control, a legislator said.

Nizat Dahlan, a member of the House?s Commission VII, said in Jakarta last week that the exclusive rights awarded to state owned oil company PT Pertamina in the distribution of the subsidized subsidy should be retained.

BPH Migas's tender plan for the distribution of subsidized fuels should therefore be cancelled and the agency should instead name Pertamina as the sole distributor of the fuels, he said.

?The sales of products receiving the government subsidy should not be given to private private companies,? he said.

Tubagus Haryono, the head of BPH Migas, the regulatory body for downstream oil and gas industry, said earlier in Jakarta that the agency would use a direct appointment mechanism in selecting the distributors of subsidized fuels for 2010 in order to avoid the lengthy tendering process.

BPH Migas has invited to 19 companies to join the selection, including PT Petronas Niaga Indonesia, PT AKR Corporindo, PT Elnusa Petrofin, PT Petro Andalan Nusantara, PT Cosmic Indonesia, PT Patra Niaga, PT Jagad Energy, PT Dwikarya Niaga Agung, PT Medco Sarana Kalibaru, PT Premindo Mitra Kencana, PT Bumi Asri Prjma Pratama, PT Shell Indonesia, PT Humpuss Trading, PT Petrobas Indonesia, PT Pumas Petro Lampung, PT Total Oil Indonesia, PT Solar Premium Central, and PT Lingga Perdana. (*)