JAKARTA, Oct 1 — Indonesian state energy firm Pertamina has stated that private fuel retailers have yet to purchase gasoline due to concerns about fuel specifications, despite thinning stocks.
Last month, Jakarta told private retailers to import more fuel through Pertamina after Shell, BP-AKR — the operator of BP's fuel stations — and others ran low on supply as more customers turned to them, following an inquiry into the quality of Pertamina's own gasoline.
Last week, Pertamina said that Vivo Energy Indonesia had agreed to purchase 40,000 barrels of a 100,000-barrel cargo of base fuel that Pertamina had imported, but the deal subsequently collapsed due to concerns about the fuel's ethanol content.
"The concern that private gas stations conveyed was ethanol content ... there is 3.5 per cent ethanol (in the gasoline) that makes private gas stations cancel the purchase," said Pertamina Patra Niaga deputy chief executive officer Achmad Muchtasyar.
He made the remarks during a Parliamentary hearing today, adding that initially Vivo and BP-AKR had shown interest in making a purchase.
Vivo officials told the hearing they cancelled the purchase because Pertamina could not meet "technical matters", without providing further details. But they said the company was open to purchasing from Pertamina in future.
BP-AKR's chief executive Vanda Laura said the company was seeking base fuel with no ethanol content, noting that no agreement was reached as a certificate of origin for the fuel imported by Pertamina was not made available.
"One of our shareholders operates in 70 countries. We have to adopt international law and reduce trade sanction risk.
"We have to ensure the product did not come from a country that was embargoed internationally," she said during the hearing.
Shell, BP-AKR, and Vivo said stocks of gasoline products were only available at a few of their fuel stations and would not last beyond the next few days.
BP-AKR stated that the supply issue might prompt it to reassess its expansion plans for the next few years.
