Shell seeking bigger role in distribution of subsidized fuel

Shell Indonesia, the subsidiary of Dutch-English oil giant Royal Dutch/Shell, is seeking a bigger role in the distribution of subsidized fuel in the country?s major cities both in Java and outside Java, Kontan reported on Friday.

Sammy DeGuzman, the general manager for retail, said in Jakarta on Friday that the company was still discussing with the downstream regulatory body BPH Migas on the possibility of increasing its role in the distribution of subsidized fuel.

Meanwhile Shell Indonesia president Darwin Silalahi said that Shell and other private fuel distributors should be allowed not only to distribute subsidized fuel outside Java, but also in Java and Bali.

?If we are allowed only to sell (subsidized fuel) outside Java, it will restrict our business expansion plan,? he said.

BPH Migas recently named three private fuel distributors including Shell Indonesia, PT Aneka Kimia Raya (AKR) and Petronas to become Pertamina?s partners in distributing subsidized fuels outside Java.

Shell was awarded the rights to sell about 5,110 kiloliters of subsidized Premium fuel a year or 14 kiloliters per day in Medan, while Petronas will sell 20,440 kiloliters of subsidized Premium fuel a year or 56 kiloliters a day also in Medan.

AKR won the rights to sell 109,162 kiloliters of subsidized diesel a year or 299 kiloliters a day in North Sumatra?s cities of Medan and Dili Serdang, and several areas in Lampung including Metro, Central Lampung, East Lampung, South Lampung, North Lampung and Bandar Lampung, as well as in Pontianak and Banjarmasin in Kalimantan. (*)