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Gamya Threatens Switch From Pertamina Over Fuel
Arti Ekawati | July 28, 2010

In this file photo, a Pertamina gas station in Jakarta. The Gamya Taxi Group says it may switch from using Pertamina In this file photo, a Pertamina gas station in Jakarta. The Gamya Taxi Group says it may switch from using Pertamina's Premium fuel to Shell fuel after 270 vehicles needed parts repaired in what Gamya believes is due to fuel quality. (JG Photo/Afriadi Hikmal)
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mauriceg
7:18pm Jul 31, 2010

So, these Pertamina folks, you know, the state-operated ones that make and employ, well, you know, these metal cylinders that sometimes explode, killing people and destroying homes.We know they're trustworthy when they talk about the purity of their Premium fuel. They told us they were trustworthy. What more do you need? They also said that Premium fuel meets government standards. I didn't even know they had any, not with all those potential domestic bombs-in-waiting. It looks like another mad fatwa,celebrity wrongdoing or peterporn episode needs to be unleashed, quick.

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Jakarta. The Gamya Taxi Group on Wednesday threatened to drop embattled state oil and gas firm PT Pertamina as its fuel supplier unless the company improved the quality of its Premium gasoline.

Gamya blames the heavily scrutinized fuel for an estimated Rp 500 million ($55,000) in losses over the past month.

Gamya’s president director, Mintarsih Latif, attributed the losses to repair costs and lost revenue after fuel pumps malfunctioned on 270 of the company’s vehicles. The company claims the problems were caused by impurities in Pertamina’s fuel.

Two other taxi companies, Blue Bird Group and Express Group, have also reported widespread problems with fuel pumps and have questioned the quality of Pertamina’s Premium fuel.

On Tuesday, Mintarsih said that independent tests conducted in Thailand at the behest of an automotive distributor found that the sulfur content in Pertamina’s Premium gasoline exceeded normal levels.

But Evita Legowo, director general of oil and gas at the Ministry of Energy and Mineral Resources, on Tuesday told the House of Representatives that samples of Pertamina’s Premium fuel taken at four stations in Jakarta had met quality standards.

Though Gamya blames Pertamina for its losses, Mintarsih said the company would not sue the state firm or seek compensation. Instead, it is considering switching providers to Shell.

Shell’s 92-octane fuel sells at a considerably higher price — Rp 6,200 per liter — than Pertamina’s 88-octane Premium, which goes for Rp 4,500 per liter. A higher octane rating usually translates to better engine performance.

Mintarsih acknowledged that the price difference would raise the company’s operating costs, as it uses about 19,000 liters of gasoline a day to fuel its 900 taxis.

“If Pertamina does not improve the quality of its Premium, I think we will move to Shell, because we cannot let this damage continue,” she said.

Despite the potential increase in operating costs, Mintarsih said Gamya would not raise fares until at least the end of Ramadan, in mid-September.

Shell Indonesia spokeswoman Fathia Syarif declined to comment, saying the company does not issue statements about ongoing negotiations.