Shell opens first retail outlet, Petronas to follow

Shell Indonesia, a local arm of Royal Dutch Shell Plc, opened its first retail outlet at the upmarket Lippo Karawaci housing estate in Tangerang, some 20 kilometers west of Jakarta.
Shell offers Super and Super Extra gasoline with octane levels of 92 and 95, respectively. The Super is sold at Rp 5,700 (57 U.S. cents) per liter while Super Extra is offered at Rp 5,900.
The two types of gasoline are direct competitors for state oil and gas firm PT Pertamina's Pertamax and Pertamax Plus, which are sold at the same prices.
The retail outlet is Shell's first investment plan in the downstream sector, following the implementation of Law No. 22/2001 on oil and gas. The implementation ended Pertamina's monopoly in the downstream sector as well. "We are proud to be back in the fuel business in Indonesia," Shell Indonesia country chairman Bob Moran said in a statement.....

Chairman of The Downstream Oil and Gas Regulating Agency (BPH Migas) Tubagus Haryono said previously that Shell is going to build 400 gas stations in eight years time. Malaysian Petronas is planning to build 200 gas stations in the same period. The first of Petronas gas station is scheduled to be opened next month in Cibubur, West Java province. The agency had awarded retail license to eight oil companies including Chevron, the largest crude oil producer in Indonesia.

But most of the gasolines should be imported as none of world players operating refinery in Indonesia. All refineries are owned by Pertamina. Sinopec from China is conducting a feasibility study to build a new refinery in East Java in a joint venture with Pertamina.

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