Pertamina refuses to participate in PLN?s fuel supply tender

State oil and gas company PT.Pertamina said on Friday it would not participate in HSD supply bidding state electricity firm PLN is opening as the latter still has arrear to the former.

Pertamina Deputy Director Hanung Budya said PLN still owed Pertamina some Rp.13 trillion, or US$1.4 billion on unpaid fuel bills. ?Pertamina had been servicing PLN for more than 40 years and with such amount of debts, it?s irrational for Pertamina to participate,? he said.

PLN early this week invited suppliers to submit proposals to supply fuel oil to its power plants. PLN?s director Ali Herman Ibrahim earlier said that PLN is seeking to buy 1 million barrels of HSD this year from cheapest supplier, cutting Pertamina?s monopoly as PLN?s sole supplier. (godang)