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Pertamina expects fuel subsidies to cost Rp 2t next year
The Jakarta Post , Jakarta | Wed, 12/24/2008 5:52 PM | Business
The State-owned oil company, PT Pertamina, expects to lose up to Rp 2 trillion (US$ 166 million) next year from the distribution of subsidized fuels to the public, kompas.com reports.The losses would be caused by the "alpha percentage" (margin between distribution costs and profit) which has been set by the government at 8 percent, assuming global oil prices of $50 per barrel and a rupiah value of Rp 11,000 to the U.S. dollar, Pertamina president director Ari Soemarno said Wednesday.
Pertamina has asked the Finance Ministry and State Ministry for State Enterprises to increase the alpha percentage to at least 12.5 percent -- the minimum it needs to break even, Ari said.
In 2008, the distribution business contributed Rp 4 trillion in net profits to Pertamina, with skyrocketing fuel prices around the world exceeding $100 per barrel a few months ago. (ewd)
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Randy (not verified) — Wed, 12/24/2008 - 8:12pm
i think they meant that they expect corruption to cost the company 2t next year...
if you are going to make a loss next year you surely must be making a killing at the expanse of the poor right now...
just exactly what are you subsidising? the same grade of fuel as pertamax plus is only rp4300 per litre in USA right now!
I urge everyone to check out the daily prices of gas in USA on http://www.gasbuddy.com/
The government is no longer subsidising but in fact making a huge profit from the filthy oil products that they are selling here. American fuel are much cleaner and have higher octane levels yet are currently selling much cheaper than in Indonesia... Its time that we expose this blatant lie that the government has been spewing! remove this crooks from power!
Randy (not verified) — Wed, 12/24/2008 - 8:12pm
i think they meant that they expect corruption to cost the company 2t next year...
if you are going to make a loss next year you surely must be making a killing at the expanse of the poor right now...
just exactly what are you subsidising? the same grade of fuel as pertamax plus is only rp4300 per litre in USA right now!
I urge everyone to check out the daily prices of gas in USA on http://www.gasbuddy.com/
The government is no longer subsidising but in fact making a huge profit from the filthy oil products that they are selling here. American fuel are much cleaner and have higher octane levels yet are currently selling much cheaper than in Indonesia... Its time that we expose this blatant lie that the government has been spewing! remove this crooks from power!