BPH Migas to appoint subsidized fuel oil distributor directly in 2010
ANTARA News, 05/14/09 12:03
Jakarta (ANTARA News) - The Down Stream Oil and Gas Regulating Agency (BPH Migas) has decided to make a direct appointment for a corporate body which will be assigned to distribute subsidized fuel oils in the country in 2010, its chief said.
Head of BPH Migas Tubagus Haryono told a hearing with House Commission VII on energy affairs here on Wednesday that the mechanism for the direct appointment would be carried out on a regional basis.
"The corporate body which will be appointed directly has to meet the commercial, financial, technical and administrative requirements," he said.
He said that the direct appointment process would be started early in June after going through a public hearing.
Tubagus said that his side had prepared a mechanism concept for the direct appointment of a corporate body which would provide and distribute subsidized fuel oils in 2010.
In the meantime, House Commission VII member Ismayatun questioned the readiness of BPH Migas to carry out the direct appointment.
"This is important because it could arise questions if it is not carried out transparently," he said.
Based on Presidential Decision No. 71 / 2005 on the Procurement and Distribution of certain types of fuel oils, the company or corporate body which would carry out the distribution of subsidized fuel oils could be assigned with a direct appointment.
BPH Migas estimates that the volumes of subsidized fuel oils in 2010 could reach 34.9 million kiloliters which consist of 20.6 million kiloliters of premium gasoline, two million kiloliters of kerosene and 12.3 million kiloliters of diesel oil.
In the meantime, the amount of subsidized fuel oils based on the 2009 state budget was set at 36.85 million kiloliters which consisted of 19.4 kiloliters of premium gasoline, 5.8 million kiloliters of kerosene and 11.6 million kiloliters of diesel oil. (*)
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