Shell opens Indonesia?s 1st non-Pertamina gas station

Royal Dutch/Shell has commenced operations of Indonesia?s first private gas station in Karawaci near Jakarta on Tuesday, marking the advent new heavyweight competitors for state oil and gas Pertamina.

The gas station will, on the first phase, sell two brands of high-octane gasoline, namely Shell Super (Octane 92) at Rp.5, 700 or US$0.57 per liter and Shell Super Extra (Octane 95) at Rp.5, 900 per liter. The two types of gasoline are direct competitors for Pertamina's Pertamax and Pertamax Plus, which are sold at the same prices.

The retail outlet is Shell's first investment plan in the downstream sector, following the implementation of Law No. 22/2001 on oil and gas. The implementation ended Pertamina's monopoly in the downstream sector.

Shell Indonesia senior official Wally Saleh said that Shell would open more gas station in greater Jakarta area by the end of this year.

Earlier report said that Shell is planning to build up to 400 gas stations in Java within the next four years and to build storage facility in Cilegon, Banten province.

Meanwhile, an official from the ministry of energy and mineral resources said Malaysian oil firm Petronas is currently constructing a gas station in Cibubur area in the Eastern part of Jakarta. (godang)