Pertamina to cease crude processing deal
The Jakarta Post, Jakarta
State-owned oil and gas company PT Pertamina said on Friday it would no longer seek crude processing deals (CPDs) next year to cover fuel consumption at home.
The company would instead import fuel products because it was more economical than the CPD arrangement, Pertamina processing deputy director Dwi Kushartojo said.
"CPD is not an option for next year. Importing fuel products is cheaper than CPD," Dwi told reporters as quoted by detik.com.
Dwi did not say why importing fuel would be cheaper.
He explained that the CPD arrangement was carried out to avoid production shortfalls at home at a time when the company's Balongan refinery in Indramayu, West Java, underwent a two-month maintenance program starting in September.
However, Dwi said, Balongan had been fully operational since Oct. 24. Thus, CPD was no longer needed.
During the overhaul period of the refinery, Pertamina imported fuel products and sought CPD deals to ensure domestic supply. But if another refinery has to undergo maintenance next year, Pertamina would opt to import the shortfall.
Balongan refinery produces between 100,000 and 125,000 barrels per day of fuel, which makes up 10 percent of Pertamina's total production.
Sixty percent of Balongan's production goes to Jakarta, consisting of premium gas, kerosene and diesel fuel.
Pertamina produces some one million barrels per day from its seven refineries. But the output only covers 80 percent of the country's total fuel consumption.
Meanwhile, Pertamina also announced that fuel prices for the public and transportation sector in November remain unchanged from previous month levels.
The prices of premium gasoline at gas stations remains at Rp 1,810 per liter, while the price of kerosene is still Rp 1,800 per liter.
Automotive diesel oil stands at Rp 1,650 per liter, industrial diesel oil at Rp 1,650 per liter and fuel oil at Rp 1,560 per liter, the company said in a media release.
Pertamina's high quality gasoline brands Pertamax and Pertamax Plus will still be sold at Rp 2,300 per liter and Rp 2,600 per liter respectively.
However, fuel prices for industries were lowered by 3.3 percent from last month due to a drop in Mid Oil Plats Singapore (MOPS) price of between 0.6 percent to 4.6 percent.
Stronger local currency against the U.S. dollar also contributed to the cut in the prices.
The local currency had strengthened from Rp 8,512 against the U.S. dollar to Rp 8,455, Pertamina said.
The price for premium gasoline for industry is down from Rp 2,100 per liter in October to Rp 2,030 per liter in November. Kerosene price is Rp 1,980, down from Rp 2,040.
The price of automotive diesel is Rp 1,930 compared with Rp 2,000 in October. Industrial diesel oil is at Rp 1,890 (Rp 1,950 in October). But fuel oil remains at Rp 1,560.
Pertamina adjusts fuel prices monthly for the domestic market taking into account the movement of oil prices on the international market as part of the effort to reduce fuel subsidies.
But the government still subsidizes fuel sold to the public.