PLN's H1 fuel purchases from Pertamina drop

State-owned electricity company PT Perusahaan Listrik Negara (PLN)'s fuel purchases from Pertamina showed a significant decline in the first semester of this year, as compared to the same period, last year.

According to a report posted in the Energy and Mineral Resources Ministry's website, PLN's fuel purchases from Pertamina during the period between January to June totaled about 1,391,000 kiloliters for high speed diesel (HSD), 4,000 kiloliters for marine diesel fuel (MDF) and 1,391,000 kilo liters for marine fuel oil (MFO).

The figures dropped significantly from the same period of last year during which PLN purchased 7,789,000 kiloliters of HSD, 26,000 kiloliters of MDF. MFO's purchased however remained the same at 1,391,000 kiloliters.

PLN's fuel purchases accounted for about 35 percent of Pertamina's national fuel sales.

Fuel sales allocated to PLN are determined in the state budget. PLN buys the fuel from Pertamina at prices set under Mean of Plats Singapore (MOPS) index, plus a distribution cost and fee -- called Alpha -- of 5 percent. However, if the purchases exceed those allocated in the state budget, PLN should buy the fuel at MOPS prices plus a 9.5 percent Alpha. (bernard)