Indonesia: Pertamina waits for new regulation on fuel distribution

  • State-owned energy company Pertamina has expressed its readiness to distribute subsidized Premium brand gasoline all over the country, but company spokesman Adiatma Sardjito declined to comment further, saying that the company would wait for the new regulation.
  • Pertamina is currently only tasked to distribute the subsidized fuel in Java, Madura and Bali.
  • “Principally, we will follow the regulation,” said Adiatma. He responded to the statement made by Deputy Energy and Mineral Resources Minister Arcandra Tahar, who said the government would revise Presidential Regulation No. 191/2014 on procurement, distribution and fuel retail prices to expand Pertamina’s role in fuel distribution.
  • Adiatma said he could not talk much about the details of its new tasks because the regulation was still being prepared by the government.
  • The government’s plan to revise the regulation on fuel distribution was sparked by the findings of the Downstream Oil and Gas Regulatory Agency (BPH Migas) about the shortage of Premium supply in many parts of the country.
  • BPH Migas said there are two reasons that caused the shortage – Pertamina’s intention to reduce the supply as it wanted to maintain the existing Premium quota to the end of 2018 and the individual gas stations intention to reduce the stock of Premium as they preferred to sell non-subsidized gasoline, given that they received a smaller margin from selling Premium.

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