The transfer of Pertamina's PSO rights to BPH Migas delayed

The transfer of Pertamina's Public Service Obligation (PSO) to BPH Migas, the regulatory body for oil and gas upstream industries, has been delayed until January next year.

"The government has asked the extension of the deadline for the deliberation of the transfer of Pertamina's PSO rights until December 1. It means the formal transfer of the PSO rights to BPH Migas could be only made in January," the chairman of BPH Migas, Tubagus Haryono, said in Jakarta on Thursday.

The government initially scheduled to transfer the PSO rights to BPH Migas on Nov. 23, this year.

He said that the transfer of the PSO rights would be regulated by a Presidential decree. "The draft regulation has been completed but it has not been discussed with Minister of Energy and Mineral Resources," he said.

With the abolition of the PSO rights, Pertamina will no longer be required to handle fuel distribution in the country, providing the chance for private companies to enter the country's fuel retail market.

Tubagus said that under the new system, the supply of fuel for the domestic market would be given to private companies. "The mechanism for the appointment of companies to be in charge of fuel distribution is being prepared," he said. (godang/dino)