Delay in Euro II seen

On January 1, Indonesia implemented a new ruling requiring all new light- and heavy-duty vehicles and motorcycles to comply with Euro II emission standards before they are allowed on the roads. But Indonesia’s plans to introduce Euro II-compliant gasoline are likely be delayed as state-owned Pertamina is locked in discussions with the government over the switch. A key point of contention is Pertamina’s unwillingness to phase out 88 RON gasoline and replace it with the 92 RON. Another hurdle is that not all of Pertamina’s refineries can make gasoline with the lower sulfur content of 500 parts per million (ppm). Pertamina operates all seven of Indonesia’s refineries. The proposed specifications include a cap on benzene content of 5% by volume and an aromatics requirement, as well as a reduction in the maximum allowable sulfur content to 500 from 1,000 ppm. Although Euro II standards do not specify a minimum research octane number (RON), the government is understood to be looking at imposing a minimum RON of 92, in line with other Asian countries’ shift to 90 RON and above. A switch to 92 from 88 RON also would mean Pertamina’s refineries would end up with more naphtha for export. (February 16, 2007)