Wednesday, 20 August 2008

Government opens tender for 2009 subsidized fuel distribution

The government has opened a tender to procure and distribute subsidized fuel in 2009, Tubagus Haryono, head of the downstream oil and gas regulator BPH Migas, said,quoted by Thomson Financial. Haryono said his office has sent invitations to 27 companies to take part in the tender, including Pertamina, Malaysia's Petronas, Royal Dutch Shell, AKR, Medco Sarana Kalibaru and Barito Energy. BPH Migas will pick the winner after assessing the tender participants' readiness in terms of, among other criteria, their distribution network, fuel storage facilities and financial capability.Over the past three years, state-run oil and gas company PT Pertamina, as mandated by the government, has been distributing subsidized fuel given a lack of readiness on the part of private companies. Pertamina ended its monopoly of the distribution of subsidized fuel as a public service obligation (PSO) at the end of 2005. The government still subsidizes about 60% of nationwide fuel consumption.

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