Pertamina to sell high-octane gas at five more gas stations in Jakarta

State-owned oil and gas company Pertamina will sell high-octane gas in five more gas stations in Jakarta and surrounding areas within the next six months in order to encourage the public to use cheaper and clean fuel.

Deputy Marketing Director Hanung Budaya said in Jakarta Friday that two stations in the region would start selling the fuel this month so that more cars, particularly public vehicles, could use the fuel instead of the highly subsidized Premium gasoline.

Pertamina targets to increase the number of fuel stations selling the fuel to 50 by the end of 2009.

The fuel, called Vigas, is compressed natural gas (CNG) with 98 octane. It is now only available at Pertamina's fuel station on Jl Pramuka, East Jakarta. Although the gas sells only for Rp 3,600 (1US$= Rp 9,460) per liter equivalent, cheaper than subsidized Premium which sells for Rp 4,500 per liter, the fuel is not so popular among vehicle owners.

Separately, Pertamina's Director for Retail Operation Werry Prayogi said that the Jakarta administration needed to issue a regulation requiring all public vehicles to use environmentally-friendly gas instead of gasoline in order to improve the air condition in the city.

"No policy has so far been issued by the government to encourage vehicle owners to use alternative fuel," he was quoted as saying by the Investor Daily.

Although car owners have to pay an additional cost of between Rp 4 million and Rp 12 million to buy conversion kit, in the long-term, the use of gas would be less costly, than if they use Premium gasoline, he said. (*)