Pertamina faces difficulties to acquire gas stations
Wednesday, October 4 2000 - 04:00 AM WIB
The state-owned oil and gas company Pertamina is facing a difficulty to realize plans to acquire private-owned gas stations due to rejection particularly from gas stations in big cities, according to company senior official.
Pertamina logistic and marketing director Harry Purnomo said that the owners of gas stations in big cities prefer to wait until the liberalization of the domestic fuel retail market in three years time to gain a greater profit.
Harry said that owners of gas stations in smaller towns were basically ready to sell part of their ownership to Pertamina.
He said that the owners of the gas stations in big cities would only sell part of their ownership only if Pertamina could provide them with a greater margin than the current 4 percent.
Harry said that a 4 percent margin under the current price level was deemed insufficient. He said that the owners of the gas stations wanted an 8 percent margin.
He said that there was a prospect of a greater profit once the retail market was liberalized and domestic fuel price was close to the international level. Domestic fuel price is currently subsidized by the government.
Pertamina currently owns around 40 gas stations out of the more than 2,400 gas stations through out the country.
Pertamina wants to expand its retail operation by acquire part of the gas stations to anticipate future competition when the retail market was fully opened including to foreign investors. (*)