Indonesia: Total Oil Indonesia Plans new Sites Ahead of Subsidy Limits
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Tuesday, 31 January 2012 |
Total Oil has earmarked up to $40m to expand its Indonesian operations. Asif Iqbal, Vice President of Retail and Sales at Total Oil Indonesia, says the firm plans to more than double its fuel service station business with the investment.
Currently operating 13 stations, Total intend to build 15 to 20 more stations this year in response to the Indonesian government’s proposal to restrict private cars from using subsidised low-octane fuel. Should the government’s plan proceed, private car users will have to fill up with non-subsidised fuel, which is almost double the price. “We have been preparing for this [restriction],” said Iqbal. “We really welcome it if the government really implements it.”
Total’s Performance 92 (RON 92) is sold for about Rp8,650 per litre making it ready to compete with Pertamina, whose equivalent high-octane fuel, Pertamax, is priced at about Rp8,700 per litre.
PetrolWorld 31012012
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