Pertamina, PLN sign five-year fuel supply contract

State owned oil and gas company Pertamina and state-owned electricity company PT Perusahaan Listrik Negara (PLN) have recently signed a five year-fuel supply contract which would allow the latter to get fuel supply from Pertamina at cheaper prices, Kompas reported Monday.

For this year, the contract starts from May 1 to December 21 and Pertamina would supply about 5.6 million kiloliters of fuel to PLN, said PLN's deputy director for primer energy Tony Agus Mulyantono.

He said that under the new contract, PLN would buy fuel from Pertamina at the average price under the Mid Oil Platts Singapore (MOPS) with a margin of 9.5 percent, lower than the prices set under the current deal.

Agus, however, said that as the consequence of the new deal, PLN would receive a penalty if it failed to pay within 30 days from the deadline. (*)