Pertamina may retain 2010 PSO fuels distribution

The downstream oil, gas regulator BPH Migas said on Monday that state oil, gas firm PT Pertamina may retain its exclusive right to distribute subsidized fuels for 2010.

"Pertamina is the only firm that has a complete network and infrastructure in Indonesia," Jugi Prajogio, committee member of BPH Migas said, adding that BPH Migas is still in discussion with other members to decide who will be the winner for next year's subsidized fuels.

Five firms including PT Pertamina and main rival PT Shell Indonesia, a subsidiary of Royal Dutch Shell, have passed the preliminary selection of bidders to distribute subsidized fuels in 2010.

The other three firms are PT Petronas Indonesia, PT Aneka Kimia Raya (AKR) Corporindo Tbk and PT Bumi Asri Prima Pratama.

In the revised state budget, which approved by government and House of Representative (DPR) on July 2009, the subsidized fuel quota is set at 38.94 million kiloliters. The amount consists of 20.63 million kiloliters of Premium gasoline, 5.80 million kiloliters of kerosene and 12.50 million kiloliters of diesel fuel.

Pertamina has handled the distribution of subsidized fuel, also called public service obligation (PSO) fuels, for decades and the government is now keen to allow private firms to also handle the PSO fuel distribution. (*)