JAKARTA (Reuters) -Indonesian state energy firm Pertamina said on Wednesday private fuel retailers have yet to buy gasoline, because of concerns about fuel specification, despite thinning stocks.
Last month Indonesia told private retailers to import more fuel through Pertamina after Shell, BP-AKR – the operator of BP’s fuel stations – and others ran low on supply as more customers turned to them after a inquiry into the quality of Pertamina’s own gasoline.
Last week Pertamina said Vivo Energy Indonesia had agreed to buy 40,000 barrels of a 100,000-barrel cargo of base fuel Pertamina imported, but the deal collapsed over concerns about the fuel’s ethanol content.
“The concern that private gas stations conveyed was ethanol content … there is 3.5% ethanol (in the gasoline) that makes private gas stations cancel the purchase,” said Pertamina Patra Niaga deputy CEO Achmad Muchtasyar.
He made the remarks to a parliamentary hearing, adding that initially Vivo and BP-AKR had shown interest in buying.
Vivo officials told the hearing they cancelled the purchase because Pertamina could not meet “technical matters”, without providing further details. But they said the company was open to purchase from Pertamina in future.
BP-AKR’s Chief Executive Vanda Laura said the company was seeking base fuel with no ethanol content, adding that no agreement was reached as a certificate of origin for the fuel imported by Pertamina was not made available.
“One of our shareholder operates in 70 countries,” Vanda told the hearing. “We have to adopt international law and reduce trade sanction risk. We have to ensure the product did not come from a country that was embargoed internationally.”
Shell, BP-AKR and Vivo said stocks of gasoline products were only available at a few of their fuel stations and would not last beyond than the next few days.
BP-AKR said the supply issue might force it to review its expansion plans for the next few years.
(Reporting by Bernadette Christina; Editing by Clarence Fernandez)
