Pertamina defers some gasoline imports ahead of cuts to fuel subsidies
7:20 am Friday, September 02nd, 2022
NEW DELHI (Reuters) – Indonesia’s state-owned oil giant Pertamina, Asia’s biggest gasoline importer, has deferred some of its gasoline deliveries for September ahead of planned government cuts to fuel subsidies which are likely to hit demand, traders said.
The country has likely deferred gasoline cargoes of roughly 1.2 million barrels, a source with knowledge of the matter said. Revised imports would be around 7 million-8 million barrels in September, he added.
Pertamina could not be immediately reached for comment.
Indonesia has been considering raising subsidised fuel prices by 30% to 40% to manage fiscal pressure from a ballooning subsidy budget amid high global oil prices and a depreciating rupiah.
Reducing fuel subsidies could impact consumption, leading to lower imports, a Singapore-based trader said.
Asia’s refining margin for gasoline against Brent slipped into negative territory in late August amid concerns about the economic health of key oil-importing economies.
The crack inched higher to a premium of $3.34 a barrel on Friday after plunging to March 2020 lows a day earlier at a discount of 45 cents a barrel.
(Reporting by Mohi Narayan in New Delhi, Florence Tan in Singapore; Editing by Jan Harvey)
