Petronas, AKR end Pertamina?s subsidized fuel distribution monopoly

Downstream watchdog BPH Migas on Monday formally announced participation of Indonesian unit of Malaysian oil, gas firm Petronas and IDX-listed firm PT AKR Corporindo along with state oil, gas company PT Pertamina (Persero) to distribute subsidized fuel in 2010, ending the long-held monopoly of Pertamina.

Petronas has won the right to distribute 20,440 kilolitres of subsidized low-octane gasoline in the city of Medan, North Sumatra, next year, the head of Indonesia's downstream oil regulator, BPH-MIGAS Chairman Tubagus Haryono said.

AKR would also distribute 56,500 kilolitres of subsidized diesel oil in Lampung province, in south Sumatra and in the cities of Banjarmasin and Pontianak in Kalimantan.

The remaining subsidized fuel would be supplied by Pertamina in 2010.

Overall, the government planned to supply of 21.4 million kilolitres of subsidized gasoline and 11.2 million kilolitre of subsidized diesel oil in 2010, Tubagus said.

This year, Indonesia expects 19.44 million kilolitres of subsidized low-octane gasoline and 11.6 million kilolitre of diesel to be supplied.

BPH-MIGAS decides each year on the rights to supply and distribute subsidized oil products such as low-octane gasoline, kerosene and diesel.(godang)