Shell, Petronas may sell subsidised fuel in Indonesia

Royal Dutch Shell Plc and Petroliam Nasional Bhd (Petronas) may bid to sell subsidised fuel in Indonesia as the country opens its market to competition and scraps PT Pertamina?s monopoly, Bloomberg reported Monday.

The Indonesian government would invite bids to sell subsidised fuels next year, Tubagus Haryono, chairman of state oil refining regulator BPHilir Migas, said.

The winners would have to compete with Pertamina, which has been a monopoly in Indonesia, he said.

?The government will pick those who can offer selling the fuels at the lowest subsidy level,? Tubagus said.

Oil companies are seeking to start fuel retail businesses in Indonesia to tap demand that may grow an average of 6% annually for the next five years.

Last year, the Indonesian government gave nine companies, including Shell, BP Plc and Petronas, licences to import and sell unsubsidised fuel.

?The companies are still focusing on selling high-octane fuel because Pertamina still holds the monopoly on subsidised products,? Tubagus said.(*)