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Pertamina urges BPH Migas to crack down 'illegal' Pertamini
Nicke said the kiosks were against the government’s one-price fuel policy.
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A soldier buys Premium gasoline at an unofficial retail gasoline kiosk known as Pertamini. (JP/Arief Suhardiman)
State-owned oil and gas company PT Pertamina has urged downstream oil and gas regulatory agency BPH Migas to discipline unofficial retail gasoline kiosks known as Pertamini across the country following reports that they sell poor-quality fuel at higher prices.
According to Pertamina president director Nicke Widyawati, Pertamini kiosks not only sell fuel at prices that are much higher than those at official Pertamina gas stations, but they also compromise the purity of the fuel by mixing it with other substances, including water.
Some kiosks sell fuel at Rp 10,000 (70 US cents) per liter or even higher while Pertamina sells it for Rp 7,400 per liter at its gas stations.
“Pertamini's business is illegal. Apart from higher price, the purity of their gasoline does not meet regulatory standards,” Nicke said in Makassar, South Sulawesi, on Friday as quoted by kontan.co.id.
She added that the kiosks were against the government’s one-price fuel policy.
Indonesia consists of more than 17,000 islands and gasoline is still not equally distributed, which means remote regions still struggle to have access to fuel. This has led to the emergence of Pertamini kiosks, which require very little capital and can be acquired by anyone.
It is not uncommon to find small businesses selling gasoline in glass bottles in both rural and urban areas around Indonesia. These merchants simply buy the fuel at official gas stations, then resell it in 1-liter bottles on the side of the road.
A Pertamini acquires its fuel with the same method but resells it using a mobile red and white kiosk that can be bought online for around Rp 8 million.
Nicke is aware that many communities in remote places need the kiosks as there are not many gas station (SPBU) available.
“I do understand their situation. However, these problems must be resolved. We will overcome these problems with BPH Migas,” she said.
Nicke added that Pertamina planned to open Pertashops, which will sell gasoline, LPG gas and lubricants, in about 7,300 villages across the country by 2020. (das/evi)
