Pertamina has strengthened its position in the non-subsidized fuel business, further squeezing Shell and Total, thanks to the government’s unpopular decision to increase the price of subsidized fuel.
The state-owned energy giant controlled an 85.4 percent market share in the non-subsidized fuel business last year, a significant increase from 75.38 percent in 2014. Pertamina marketing director Ahmad Bambang said the consumption of non-subsidized fuel had increased as the price gap with subsidized fuel narrowed. The gradual cut in fuel subsidies amid decreasing global oil prices was the main factor behind the situation.
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