Govt extends Pertamina?s PSO

Government decides to extend Pertamina?s public service obligation (PSO) to distribute and sell subsidized fuel throughout the country until the end of this year, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Tuesday.

Under the current Oil and Gas Law, Pertamina?s PSO would end November 23, 2005.

Next year, said Purnomo, PSO to sell subsidized fuel would be auctioned, with companies that are already get licenses eligible to participate.

?Starting next year, company is that are interested to carry out PSO must submit their bid. Companies which offer lowest fuel products prices will be declared winners,? Purnomo told reporters.

Purnomo said that the benchmark for fuel products prices would be Mid Oil Platts Singapore (MOPS) price plus distribution costs and margin. Currently Pertamina is paid by the government based on fuel products procurement costs- including fuel product costs from its refinery and oil products import- plus margin. (godang)