Pertamina welcome plan to evaluate its subsidized fuel sale performance

State oil and gas company PT Pertamina welcome plans by the Downstream Oil and Gas Regulating Body (BPH Migas) and the Office of Coordinating Minister for Economy to evaluate its performance in distributing subsidized fuel, Sindo Daily reported on Saturday.

 

The company also raised no objection if other companies also take part in providing and distributing subsidized fuel, said Ari H Soemarno, Pertamina’s CEO, in Jakarta on Friday.

 

“Please evaluate, we welcome," he went on.

 

Last week, BPH Migas said that Pertamina's performance in distributing and selling subsidized kerosene would be evaluated following reports of acute fuel shortages in some areas of the country.

 

Pertamina's de facto monopoly over the distribution and sales of the heavily subsidized kerosene is no longer effective, Eri Purnomohadi, a senior official of BPH Migas, said.

 

The government has allowed all companies to distribute subsidized fuel in the country but only Pertamina can meet the tight requirements to do the business. BPH Migas is studying a mechanism to allow other companies aside from Pertamina to do the business. (*)