Sigma can use Gulf Oil brand: Official

PT Sigma Rancang Perdana, one of companies licensed to operate in the fuel retail business, should be allowed to open a gasoline station under the name Gulf Oil because operating under a franchising agreement is not against the law, according to a senior official at the energy and mineral resources ministry.

Erie Soedarmo, director for the upgrading of downstream business of the directorate general of oil and gas of the energy and mineral resources ministry, was commenting on the policy of BPH Migas, the downstream oil and gas regulator, which forbids PT Sigma to sell fuel under the name Gulf Oil on the ground that the company does not have any direct investment in Sigma's fuel retail business.

According to Erie, there is no problem for Sigma to operate fuel retail stations under a franchising agreement with foreign retailers.

"The use of brands through franchising scheme is protected by the law," he said.

PT Sigma, one of several companies licensed to enter the country's fuel retail business, has built a gasoline station on Jalan Tendean, South Jakarta. But, the company cannot open its gasoline station due to the restriction made by BPH Migas. (*)