PLN required to buy fuel at market prices
Wednesday, October 5 2005 - 02:25 AM WIB
?Based on the new regulation, PLN should buy fuel at market prices beginning October. For this month, PLN should buy diesel oil for its power plants at Rp 5,350 per liter,? Ahmad Faisal, the head of Pertamina?s fuel division, said in Jakarta on Tuesday, referring to the Presidential Decree No: 55, 2005.
According to him, PLN should buy the company?s entire fuel needs at market prices, even though the company had been given a subsidy allocation in the state budget. PLN will need about 11.44 million kiloliters of fuel this year, about 8.35 million kiloliters would be subsidized.
PLN?s director for power generation and premier energy, Ali Herman protested Pertamina?s decision, saying that the oil and gas company had mistakenly interpreted the newly launched Presidential decree.
He said that the House of Representatives (DPR) had decided that PLN should buy diesel oil at Rp 4,740 per liter from October to December this year. ?If Pertamina will change the decision it should first consult with DPR members,? he added. (dino)