Total to open hundreds of gas stations after subsidized fuel price hike

PT Total Oil Indonesia is ready to open hundreds of gas stations in case the government ended up raising subsidized fuel prices in the third week of June. According to the plan, premium rates would increase to IDR6,500 per liter (US$ 0.65) and diesel fuel IDR5,500 per liter (US$0.55).
“We are ready to open hundreds of gas stations to provide [fuel] for the community,” said Vice President of Total Retail Operations, Kwan Kein Woo, on May 30.
But the company is still waiting for the price-hike on fuel subsidies. “We wait for the… government,” he said.
Managing Director of Total Indonesia, Emmanuel Dujeu, confirmed Total Oil will not increase the number of stations unless it would be good for business.
According to him, the company is still awaiting the decision of President Susilo Bambang Yudhoyono over raising fuel prices before taking an expansion step. “We are not going to open new branches this year. If the market [is] favorable, then Total will accelerate the opening of new gas stations.”
Currently, the company has permission to open new gas stations in the next few years. The French oil and gas company recently opened two new gas stations. “Currently we have opened 18 new gas stations and two of them opened this year,” he said.
Although it will not open new retail outlets this year, Total Oil will increase sales volume through a partnership with PT Bank Mega Tbk. In this partnership, Mega Bank credit card customers can earn up to 15% cash back on fuel purchases at Total gas stations worth Rp 500,000-1,000,000 (US$ 50.20-100.40). This program will run for one year starting June 1, 2013 until May 31, 2014.
President Director of Bank Mega, Kostaman Thayib, believes company credit card transactions in Total gas stations can be increased 5 fold to 10 billion per year.
Meanwhile, the government is planning to send subsidy cards to more than 15.5 million families on June 6 to help offset the increase in fuel prices.
“The beneficiaries will get a Temporary Direct Aid [BLSM], Help Poor Students [BSM], Rice for the Poor [Raskin] and Prospective Family Program [PKH],” said the Executive Secretary of the National Team for Acceleration of Poverty Reduction (TNP2K) Bambang Widianto.
The amount per family would be raised from IDR1.4 million (US$140.56) to IDR1.8 million (US$180.72).
(May 30, 2013)