{
    "success": true,
    "data": {
        "id": 1461077,
        "msgid": "pertamina-proposes-higher-fuel-management-fees-1447893297",
        "date": "2004-06-10 00:00:00",
        "title": "Pertamina proposes higher fuel management fees",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Pertamina proposes higher fuel management fees The Jakarta Post, Jakarta State oil and gas company Pertamina has proposed that the government double its fuel processing and distribution fees to ease the company's financial woes. Pertamina president Ariffi Nawawi said the request for additional fees was reasonable given the fact that the company had to shoulder \"opportunity losses\" by maintaining a 23-day national oil fuel stock. \"We did not make the proposal seeking a greater profit.",
        "content": "<p>Pertamina proposes higher fuel management fees<\/p>\n<p>The Jakarta Post, Jakarta<\/p>\n<p>State oil and gas company Pertamina has proposed that the<br>\ngovernment double its fuel processing and distribution fees to<br>\nease the company's financial woes.<\/p>\n<p>Pertamina president Ariffi Nawawi said the request for<br>\nadditional fees was reasonable given the fact that the company<br>\nhad to shoulder \"opportunity losses\" by maintaining a 23-day<br>\nnational oil fuel stock.<\/p>\n<p>\"We did not make the proposal seeking a greater profit. We are<br>\njust asking for an amount that is enough to cover all our (fuel<br>\nprocessing and distribution) cost burdens,\" Ariffi Nawawi said<br>\nafter a hearing with House of Representatives Commission VIII for<br>\nmining and energy on Wednesday<\/p>\n<p>Ariffi said the company has submitted the proposal to the<br>\nMinistry of Energy and Mineral Resources.<\/p>\n<p>At present, Pertamina charges the government 40 US cents per<br>\nbarrel in total fees, which breaks down to 20 cents for crude<br>\nprocessing and 20 cents for fuel distribution. Under the<br>\nproposal, the firm wants the fee to be raised to 80 cents per<br>\nbarrel; 40 cents for processing and 40 cents for distribution.<\/p>\n<p>Under the current system, Pertamina processes crude oil owned<br>\nby the government and distributes the oil to the public at prices<br>\ndetermined by the government. The government currently takes 85<br>\npercent of the output of the nation's oil fields, while<br>\ncontractors take the remaining 15 percent.<\/p>\n<p>Pertamina now processes about 1 million barrels of crude oil<br>\nper day at seven refineries, including 700,000 barrels of<br>\ngovernment oil and 300,000 barrels of imported oil.<\/p>\n<p>The company has run into cash flow problems resulting from the<br>\nrecent surge in oil prices. The government has provided funds for<br>\nPertamina to import crude oil at the state budget's price<br>\nassumption of $22 per barrel, which is far below the current<br>\nprice of oil of about $40 per barrel.<\/p>\n<p>Pertamina has also lost substantial revenue from supervising<br>\nproduction-sharing contractors because it has lost its monopoly<br>\nrights over the oil and gas industry.<\/p>\n<p>Darmin Nasution, director general of financial institutions at<br>\nthe Ministry of Finance, said his office would approve<br>\nPertamina's proposal once the Ministry of Energy and Mineral<br>\nResources submitted an official request.<\/p>\n<p>He said, however, the proposal would first need to be<br>\ndiscussed with the budget committee because it would increase the<br>\nfuel subsidy and cut the government's revenue for oil and gas.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/pertamina-proposes-higher-fuel-management-fees-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}