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Jakarta Post

Surge in fuel demand during Ramadan may hurt Pertamina’s cash flow

  • Stefanno Reinard Sulaiman

    The Jakarta Post

JAKARTA   /   Thu, May 2, 2019   /  03:44 pm
The Jakarta Post Image
A worker prepares to fill up a vehicle at a gas station in Jakarta.(Kompas.com/-)

An increase in the use of Premium-branded gasoline during Ramadan and the Idul Fitri holidays in early June is expected to take a toll on the finances of state-owned oil and gas company Pertamina, as the fuel will be still sold below market prices. Mamit Setiawan, the executive director of Energy Watch, said the sharp increase in consumption of the subsidized fuel would definitely hurt the cash flow of Pertamina, the main distributor of the low-octane gasoline. “It will hurt Pertamina’s cash flow, as they have to shoulder the price gap. Hopefully the company can limit the loss by [increased sales of] nonsubsidized fuel, such as Pertamax and Pertalite,” he told The Jakarta Post on Monday. Selling the subsidized fuel could hurt the cash flow of Pertamina, because it will take some time for the company to be reimbursed by the government. Daily gasoline con...