Pertamina wants an increase in fuel processing, distribution fee

State oil and gas company PT Pertamina proposed to the government for an increase in the company's fuel processing and distribution fee, a report said on Tuesday.

Pertamina downstream director Harry Purnomo was quoted by the Bisnis Indonesia daily as saying that the proposal would be submitted to the government this week.

He said that the current fee of US$0.40 per barrel was considered as too low, adding that the company wanted the fee to be increased to around $0.80 per barrel.

Harry added that demand for a hike in the fee was appropriate not only because of the current fee was too low but also since Pertamina has become a profit oriented company since the liberalization drive in the oil and gas sector started last year.

"The demand (for an increase in the fee) is appropriate ... There's no time to do social work anymore because the company is required to make profit now," he said.

Oil and gas analyst Kurtubi supported the Pertamina demand, saying that the current fee charged by Pertamina was much lower compared to those charged by other companies overseas.(*)