Pertamina likely retain role as sole distributor of subsidized fuel in 2007

Downstream oil and gas regulator BPH Migas may give state oil and gas firm Pertamina exclusive rights to supply and distribute subsidised oil products in 2007 as private firms have indequate fuel storage and distribution facilities, an industry official said on Tuesday.

"There is no other firms so far that can meet BPH Migas criteria for becoming a supplier and distributor of subsidised oil products than Pertamina," Tubagus Haryono, BPH Migas chief, told reporters.

"One of the criteria is the firm has to have a supply network in Indonesia's remote areas," he said.

Tubagus suggested that interested non-Pertamina aspirants could cooperate with Pertamina to distribute the fuel under B-to-B scheme.

Tubagus said Indonesia was expected to consume 39.81 million kilolitres (kl) of subsidised oil products in 2007, or 17.46 million kl of low-octane gasoline, 12.84 million kl of diesel oil and 9.51 million kl of kerosene. The total consumption slightly increases from 37.9 million in 2006.(godang)