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Shell braces for upcoming fuel price control
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A Shell gas station in Jakarta. (Courtesy of/venelova.com)
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il and gas firm PT Shell Indonesia, the local subsidiary of Netherlands-based Royal Dutch Shell, has stated that the government’s plan to regulate gasoline prices could negatively affect the sustainability of its business.
The Energy and Mineral Resources Ministry recently announced a plan to revise Regulation No. 39/2014 on gasoline retail prices.
Through the revision, all gasoline distributors in the country, including Shell Indonesia, must obtain approval from the ministry before increasing the price of gasoline in the general fuel type (JBU) category, except for jet fuel and industrial fuel.
“The certainty of being able to sell gasoline in accordance to its actual [international market] price is fundamental to maintaining the investment climate and Shell’s sustainability in its fuel distribution business,” Shell Indonesia retail director Wahyu Indrawanto told The Jakarta Post on Wednesday.
Wahyu said Shell had taken a close look at policies implemented in other countries where it also operated, especially ones regarding efforts to maintain inflation levels through gasoline price control.
“We have shared our thoughts with the government, hoping that they can also be taken into consideration,” he said.
Shell Indonesia sells various types of gasoline in the country, including Shell Regular and Shell Super, each with a research octane number (RON) of 90 and 92, respectively.
In Greater Jakarta, Shell Regular and Shell Super currently cost Rp 8,500 (62 US cents) and Rp 9,350 per liter, respectively. (bbn)
