May 04 10:21

Shell: Pertamina acting unfairly if dumping fuel

Jakarta (Antara News)</b> - The Indonesian unit of Royal Dutch Shell Group said it does not oppose PT Pertamina's decision to sell non-subsidized fuels at lower prices near its stations, so long as it does not constitute dumping.

"If the cheaper prices are due to dumping, it's unfair," Shell Indonesia vice president for external affairs and business development, Wally Saleh, told reporters.

Pertamina raised the prices of its three non-subsidized high-octane fuel products -- Pertamax Plus, Pertamax and DEX -- by 5.17-12.0 pct for this month, in line with high global prices.

It sets different price levels for different regions -- Batam, Sumatra, Java, Bali, and Kalimantan.

In Java, where some foreign firms such as Shell Indonesia and Malaysia's Petronas have also distributed non-subsidized fuels, Pertamina raised prices by 12.0 pct to 6,050 rupiah per liter for Pertamax Plus; 9.4 pct to 5,800 rupiah per liter for Pertamax; and 5.17 pct to 6,100 rupiah per liter for Pertamina DEX.

The increases, however, did not apply to Pertamax Plus and Pertamax sold at Pertamina's five gas stations located near privately-owned stations in Jakarta. At those five stations, Pertamina set special prices at 5,300 rupiah per liter for Pertamax Plus and 5,000 rupiah per liter for Pertamax.

The government has opened up fuel distribution to competition but only in connection with non-subsidized fuels. (*)
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