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View all search resultsajor private fuel retailers face supply shortages after rejecting an offer to purchase base fuel from state-owned energy giant Pertamina over its ethanol content.
Pertamina’s commercial arm, PT Pertamina Patra Niaga, said on Wednesday that not a single private gas station operator had finalized a deal to procure its fuel stock despite initial interest from PT Vivo Energy Indonesia (Vivo) and PT Aneka Petroindo Raya (BP-AKR), a joint venture between Indonesia’s PT AKR Corporindo and United Kingdom-based BP.
Pertamina Patra Niaga deputy president director Achmad Muchtasyar said the two companies had been in discussions to purchase imported fuel but later withdrew over the presence of ethanol in Pertamina’s base fuel.
He stressed that Pertamina’s current supply, which contains around 3.5 percent of ethanol, was within permissible government limits.
“After the two private gas station [operators] discussed it again with us, one, in this case, Vivo, withdrew its intention to proceed. After agreeing to 40,000 barrels, it ultimately dropped the deal,” Achmad told House of Representatives Commission XII, which oversees energy and mineral resources, in a meeting broadcast live on Wednesday.
He went on to say that the talks with PT Shell Indonesia had run up against “internal bureaucracy” that the company had to work through.
Read also: Pertamina-retailers fuel deal sparks price, quality concerns
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