Posted 12 October 2005 @ 14:00
Updated 12 October 2005 @ 14:55
JAKARTA, 12 October 2005 - A gas station run by Shell will start operating in Karawaci, Tangerang, Banten province, early next month, an oil official confirmed here on Wednesday. "After opening its first station in Karawaci, Shell will build another gas station in Warung Buncit, South Jakarta," Tubagus Haryono, head of the oil and gas industry regulatory agency BP Migas, was quoted by official news agency Antara as saying.
He said at first the gas station would only sell non-public service obligation (PSO) fuel oil. So far automotive fuel oils are sold or distributed only by state oil and gas company Pertamina, he said. Shell had also asked for permission to build 400 gas stations across Indoneia in the next eight years, he said.
Asked whether other private oil companies were also interested in engaging in fuel oil retail business in Indonesia, he said Petronas of Malaysia and Elnusa of Indonesia had applied for the necessary permission. These companies were targeting the subsidized-fuel oil market which was much bigger than the non-subsidized fuel oil market, he added.
"The non-subsidized fuel oil market is only five percent, whilethe other 95 percent is occupied by subsidized fuel oil," he said. The Indonesian government has planned subsidy for oil every year in order to make it affordable for consumers. Oil prices were increased in March and October this year respectively by 29 percent and 126.6 percent this year in order to alleviate the government's burden of subsidy.
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