Pertamina cuts January imports

Pertamina cuts January imports

JAKARTA: State oil and gas firm PT Pertamina cut January imports of fuel by 29 percent to 8.5 million barrels because demand fell after the government raised retail prices.

Southeast Asia's biggest fuel buyer cut purchases for January from the spot market to a maximum of 2.4 million barrels, Ari Soemarno, Pertamina's director of trading and marketing, said on Thursday. The balance is bought through term contracts.

"We cut spot purchases because demand has declined and we have enough stocks," he said. "Our stockpile is enough for 26 days of consumption, higher than the normal 22 days of stocks."

Indonesia's fuel use may fall to 175,000 kiloliters a day in December from 195,000 kl a day in September, he said.

The government increased fuel prices on Oct. 1 that were less than half the cost of imports to curb demand and reduce the budget deficit. -- Bloomberg