PLN seeks government's clarification on fuel price

State owned oil and gas company PLN has sent a letter to Minister of Energy and Mineral Resources to seek for clarification on the price of the fuel the company has to pay to Pertamina, Investor Daily reported on Tuesday.

PLN's deputy director for primary energy Tonny Agus Mulyana told the newspaper's reporter that PLN was asking for a confirmation whether the company had to pay diesel oil at Rp 6,000 per litter as stated in the Presidential decree No. 55/2005 on new fuel prices or at Rp 4,746 per litter as stated in the 2005 state budget.

"We are still waiting for the government's answer," he was quoted as saying. He added that PLN continued to receive government fuel supply especially those of high speed diesel (HSD) but had yet to discuss on the new price with related authorities. "We usually settle the payment after 30 days of the delivery," he added.

PLN's director for power generation and primary energy Ali Herman Ibrhim said that PLN should be allowed to buy the diesel oil at Rp 4,746 as stated in the state budget. Otherwise, the company's financial condition would be getting worse, he added.

However, the head of Pertamian's division for fuel division, Ahmad Faisal said that all industries including PLN should pay fuel according to the Presidential decree No. 55/2005. "It means that PLN has to buy diesel oil from Pertamina at Rp 6,000 per litter," he added.

Under the Presidential decree, the price of diesel oil sold to industries is set at Rp 6,000 per litter, Premium fuel Rp 6,290 per litter and kerosene Rp 6,400 per litter. (*)