Pertamina to sell more fuel to PLN at market price

State-owned oil and gas firm PT Pertamina has agreed to provide more fuel than the quota set in the state budget for state-owned electricity firm PT Perusahaan Listrik Negara's(PLN)power plants.

PLN will however buy the additional fuel supplies at market price as the firm does to other suppliers.

Under the 2008 state budget, Pertamina is required to meet 90 percent of oil fuel demands of PLN's power plants. The fuel is sold at subsidized price.

PLN will apparently buy the fuel from Pertamina more than the quota set in the state budget. Up to April 2008, Pertamina's fuel supply to PLN has reached 3.651.882 kilo liter or 42.24 percent of the quota, Pertamina said on Friday.

To assure a smooth fuel supply, Pertamina and PLN agreed to form a coordinating team to monitor and anticipate additional fuel demands from PLN. The team will hold a regular meeting and at any time required. PLN will inform its additional fuel demand to the team a week before the expected shipment at the latest. (denny)