Pertamina retains role as sole distributor of subsidized fuel in 2007

Oil and gas downstream regulatory body BPH Migas appointed state oil and gas company PT Pertamina to sell subsidized fuel for 2007 period.

The term starts from January 1, 2007 until December 31, 2007.

Pertamina is the only company able to meet requirements to sell subsidized gasoline, kerosene and diesel, BPH Migas chairman Tubagus Haryono said on Thursday.

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

Pertamina will get a margin of 14.1 percent above fuel prices as assessed by pricing service company Platts in Singapore to cover distribution and transportation costs as well as profits, said Pertamina?s CEO Ari Soemarno.

The government will subsidize prices for 17 million kiloliters of gasoline, 9.9 million kiloliters of kerosene, and 11 million kiloliters of diesel fuel next year.

Government ended Pertamina?s monopoly in 2005 and opened the fuel retail market to foreign competitors including Royal Dutch Shell Plc and Petronas. (godang)