Pertamina to cease crude processing deal<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
State-owned oil and gas company PT Pertamina said on Friday it
\nwould no longer seek crude processing deals (CPDs) next year to
\ncover fuel consumption at home.<\/p>\n
The company would instead import fuel products because it was
\nmore economical than the CPD arrangement, Pertamina processing
\ndeputy director Dwi Kushartojo said.<\/p>\n
\"CPD is not an option for next year. Importing fuel products
\nis cheaper than CPD,\" Dwi told reporters as quoted by detik.com.<\/p>\n
Dwi did not say why importing fuel would be cheaper.<\/p>\n
He explained that the CPD arrangement was carried out to avoid
\nproduction shortfalls at home at a time when the company's
\nBalongan refinery in Indramayu, West Java, underwent a two-month
\nmaintenance program starting in September.<\/p>\n
However, Dwi said, Balongan had been fully operational since
\nOct. 24. Thus, CPD was no longer needed.<\/p>\n
During the overhaul period of the refinery, Pertamina imported
\nfuel products and sought CPD deals to ensure domestic supply.
\nBut if another refinery has to undergo maintenance next year,
\nPertamina would opt to import the shortfall.<\/p>\n
Balongan refinery produces between 100,000 and 125,000 barrels
\nper day of fuel, which makes up 10 percent of Pertamina's total
\nproduction.<\/p>\n
Sixty percent of Balongan's production goes to Jakarta,
\nconsisting of premium gas, kerosene and diesel fuel.<\/p>\n
Pertamina produces some one million barrels per day from its
\nseven refineries. But the output only covers 80 percent of the
\ncountry's total fuel consumption.<\/p>\n
Meanwhile, Pertamina also announced that fuel prices for the
\npublic and transportation sector in November remain unchanged
\nfrom previous month levels.<\/p>\n
The prices of premium gasoline at gas stations remains at Rp
\n1,810 per liter, while the price of kerosene is still Rp 1,800
\nper liter.<\/p>\n
Automotive diesel oil stands at Rp 1,650 per liter, industrial
\ndiesel oil at Rp 1,650 per liter and fuel oil at Rp 1,560 per
\nliter, the company said in a media release.<\/p>\n
Pertamina's high quality gasoline brands Pertamax and Pertamax
\nPlus will still be sold at Rp 2,300 per liter and Rp 2,600 per
\nliter respectively.<\/p>\n
However, fuel prices for industries were lowered by 3.3
\npercent from last month due to a drop in Mid Oil Plats Singapore
\n(MOPS) price of between 0.6 percent to 4.6 percent.<\/p>\n
Stronger local currency against the U.S. dollar also
\ncontributed to the cut in the prices.<\/p>\n
The local currency had strengthened from Rp 8,512 against the
\nU.S. dollar to Rp 8,455, Pertamina said.<\/p>\n
The price for premium gasoline for industry is down from Rp
\n2,100 per liter in October to Rp 2,030 per liter in November.
\nKerosene price is Rp 1,980, down from Rp 2,040.<\/p>\n
The price of automotive diesel is Rp 1,930 compared with Rp
\n2,000 in October. Industrial diesel oil is at Rp 1,890 (Rp 1,950
\nin October). But fuel oil remains at Rp 1,560.<\/p>\n
Pertamina adjusts fuel prices monthly for the domestic market
\ntaking into account the movement of oil prices on the
\ninternational market as part of the effort to reduce fuel
\nsubsidies.<\/p>\n
But the government still subsidizes fuel sold to the public.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/pertamina-to-cease-crude-processing-deal-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }