Unleaded premium available by April: Pertamina

Unleaded premium available by April: Pertamina

JAKARTA (JP): Following the government's plan to initiate the
removal of leaded gasoline from sale in the capital this year,
the state-owned oil and gas company Pertamina will begin to
supply unleaded premium by April 1, 2001.

Pertamina's information officer Ridwan Nyak Baik said on
Monday that the unleaded premium would be supplied in phases over
a three month period.

"Hopefully, Jakarta will be free of leaded gasoline by July.
As for the price of the unleaded premium, we are waiting for the
government's subsidy," Ridwan told The Jakarta Post by phone.

In view of growing air pollution in Indonesia's urban areas,
the Minister of Mines and Energy issued a decree in October 1999
to completely phase out the use of leaded gasoline by 2003, with
the process commencing in the capital in 2001.

Earlier, the State Ministry of Environment stated on Jan. 8
that the plan had been delayed until 2003 given the high number
of vehicles using leaded fuel in Greater Jakarta.

Ridwan said 2003 would see nationwide implementation of the
unleaded fuel plan.

Ridwan also called for rules requiring the compulsory use of
devices to reduce the emission of hazardous substances from
engines.

Lead is added to fuel to boost engine performance but has been
proven to be a cause of environmental and health problems.

Health costs related to leaded gasoline are estimated at Rp 2
trillion (about US$210.5 million) annually.

The capital requires at least 8,000 kiloliters of leaded
gasoline every day, with 97 percent of consumption being sales of
premium. The number of vehicles, meanwhile, is estimated to be
increasing at a rate of 5 percent to 12 percent a year in
Jakarta.

Coordinator of the joint committee for the phasing out of
leaded fuel Ahmad Safrudin has also supported the decision.

"We are still calculating the price (of gasoline) which will
be announced next April," said Ahmad, who is also executive
director of the Jakarta branch of the Indonesian Environmental
Forum (Walhi).

To reduce octane levels in gasoline, Ahmad explained, more
funds would be needed to import raw materials and modify
Pertamina's refineries in Balongan, West Java, and Cilacap, in
Central Java.

"The cost will increase the unleaded premium price by Rp 130
per liter, but we will try to discuss an alternative to apply
incentives from the government, so that increases would not be
necessary," Ahmad said.

Currently, premium is sold at Rp 1,100 per liter, while premix
is set at Rp 1,700. Diesel fuel is Rp 800 per liter.

Ahmad said Pertamina would start experiments to reduce the
lead content of gasoline this month.

"The process will be in line with the refinery modifications,
which will take between 24 to 32 months. Meanwhile we can still
use the existing installation, at least until 2003," Ahmad said.

He said that the project would cost approximately Rp 230
million, adding that Pertamina would still supply approximately
240 kiloliters of leaded gasoline per day.

Head of the gas stations division of the National Federation
of Oil and Natural Gas Entrepreneurs, Sofyan Zakaria, said that
federation members supported the decision. (07)