YPF-Maxus clarifies press report

YPF-Maxus SES BV dismissed on Friday local press reports suggesting that the American oil and gas company had abused government fuel subsidies.

Local press reports said that Maxus purchased only 700 kilo liter of fuel from the state-owned oil and gas firm Pertamina in May, compared to 8,000 kl in April, raising speculation that the company had purchased a larger part of its fuel needs outside of Pertamina. The government raised the fuel prices for industrial needs by 50-100 percent in April, but maintained the price of fuels sold at gas stations for the general public. The price differential has tempted certain companies to source their fuel needs from the gas stations, which is equal to an abuse of government fuel subsidies.

In a statement, company vice president for marketing and relations Sugiarto Moechammad said that YPF-Maxus SES BV, as one of the partners of Pertamina in oil and gas operations, "always obeys regulations issued by Pertamina including fuel procurement."

Sugiarto said that based on actual needs for fuel operation, YPF-Maxus SES BV needed an average of 7,000 kl per month. In March, the company purchased 6,000 kl and in April 8,000 kl.

"For May 2001, it planned to purchase 6,000 kl and has taken some 4500 kl (not just 700 kl as reported in newspapers)," he said.

He added: "YPF-Maxus SES BV pays one month in advance to Pertamina, meaning that May 2001 fuel supply has been paid in April. Therefore, in line with fuel price hike in May 2001, payment for 7,000 kl has been enough for just 6,000 kl."(Amoros)