PT Pertamina counts on discounts to boost sales

Indonesian state-owned petroleum supply company PT Pertamina, Indonesia’s state-owned petroleum supply company, said in April that it has sold diesel fuel for industrial use at a discounted price to quicken private oil and gas distributors. It has to sell diesel fuel at a discount due to an overstock of 100,000 kiloliters in the country, which is equivalent to an industry fuel need of 30 days. The overstock is attributed to declining fuel consumption following during the global economic crisis. However, Pertamina chose to put a positive spin on the stock overflow, saying it created a chance for other consumers to buy diesel fuel from it. To deal with the overstock, Pertamina has been selling industrial diesel fuel to regular customers and at least five private oil and gas distributor companies including PT Jagad Energy, PT AKR Corporindo Tbk, PT Medco Sarana Kalibaru, PT Petronas Niaga Indonesia, and PT Toyota Tsusho Indonesia. (April 4, 2009)