Indonesian Govt Appoints Pertamina, AKR to Distribute Fuels at Single Price

Jakart (Antara Bali) - The Downstream Oil and Gas Regulatory Board (BPH Migas) has assigned the state oil and gas firm PT Pertamina, and logistics and supply chain company PT AKR Corporindo Tbk, as suppliers and distributors of certain kinds of fuel to realize the single fuel price policy.

The BPH Migas handed over a letter of assignment to the two companies as suppliers and distributors of these fuels at a function held at the Energy and Mineral Resources Ministry here on Thursday.

The agency also handed over a letter of assignment to Pertamina to supply and distribute special fuel at the function which was also attended by Energy and Mineral Resources Minister Ignasius Jonan.

As per the letter of assignment, Pertamina will supply and distribute 16,310,000 kiloliters of certain fuels, comprising 610,000 kiloliters of kerosene and 15,700,000 kiloliters of diesel oil (gas oil).

AKR Corporindo will distribute 300,000 kiloliters of diesel oil (gas oil).

In addition, Pertamina will also distribute 12,500,000 kiloliters of special fuel.

BPH Migas decision appointing the two companies as suppliers and distributors of these fuels as a follow up to the Energy and Mineral Resources Ministers Regulation No. 35/2016 concerning the Construction of Domestic Oil Refineries by Private Companies and Regulation No. 36/2016 concerning the Accelerated Realization of Single Prices of Certain and Special Fuels.

The regulations are aimed at encouraging fuel supplies through a single price policy as well as at boosting the distribution of fuels to outlying, outermost and remote areas which suffer shortage of fuel distributing facilities. (WDY)