Gas station owners seek higher profit from fuel sales

JAKARTA (JP): Owners of gas stations in the capital urged the state-owned oil and gas company Pertamina on Sunday to give them a greater profit margin from fuel sales, which is needed to cover their increasing operational expenditures.

Head of the gas stations division of the National Federation of Oil and Natural Gas Entrepreneurs, Sofyan Zakaria, said the owners had proposed a 7 percent commission from the current 4 percent for every liter of premium sold and the current 5 percent for each liter of diesel fuel sold.

"We hope Pertamina will consider our proposal as with the new profit margin, we'll have more opportunity to expand our business," Sofyan told The Jakarta Post by phone.

Currently, there are 182 gas stations across the capital, which supply at least 4,059,000 liters of premium and 1,532,000 liters of diesel fuel to Jakartans everyday. About six of these gas stations also supply liquid natural gas.

Sofyan said their operational expenditures have increased mostly because gas stations are required to provide a social service to the public, such as 24-hour-service including during holidays.

"We also provide our customers with free-of-charge toilets and arrange easy access to minimarket and telecommunication centers (wartel) at most of our outlets," he said.

He said that such public service, which is rarely found in other kinds of businesses, should be taken into account.

A manager of a gas station at Pejompongan in Central Jakarta, Setiabudi, said his gas station supplies an average of 50,000 liters of premium, 8,000 liters of premix (higher octane premium) and 20,000 liters of diesel fuel everyday.

The premium is sold at Rp 1,150 (12 US cents) per liter, while premix is set at Rp 1,700 per liter, Super TT is sold also at Rp 1,700 per liter and diesel fuel at Rp 800 per liter.

Setiabudi said the commission earned from the fuel sales amounted to Rp 2.3 million from premium, Rp 680,000 from premix and Rp 800,000 from diesel fuel.

"However, earnings varied from one gas station to another, given the location of the station," he said.

Contacted separately, coordinator of the Joint Committee for Leaded Fuel Phasing-Out (KPBB) Ahmad Safrudin said on Saturday that the owners must present their proposal with a transparent cost structure.

"I think the average of four percent profit margin is enough, given the vehicle population in the capital and the demand from Jakartans," he said, adding that a public hearing to discuss the price settlement would be a suitable resolution.

Jakarta's vehicle growth rate has been between 5 percent and 12 percent a year, Ahmad said, adding that those vehicles were the major cause of air pollution in the capital and other parts of the country.

"The owners of gas stations also need to consider the consequences of the increased commission, which might result in the increase of the price of basic commodities," he said. (07)