Summary Effect of Oil and Gas Distribution in SCM Process

Summary Effect of Oil and Gas Distribution in SCM Process

By Muhammad Ibnu Fajar

when discussing the oil and gas industry, it involves upstream and downstream industries. regulation of oil and gas BPH, has legislation function. It is developed by downstream industry entrepreneurs. when discussing about fuel oil, then this relates to 2 things namely product cost and logistics cost.

There are several types of fuel oil, for example:

- certain fuel oil         :    types of subsidized fuels such as solar    subsidies, and kerosene, etc). 

- General Fuel Type    : This type of non-subsidized fuel type such as gasoline, bio diesel, pertalite, pertamax, pertamina dex, and so on.

Regarding the price of fuel oil, its policy maker is the government which applies the price of fuel oil

There are 2 distribution activities on oil:

1)   primary distribution:

·        not influenced by national economic conditions, because we are importing. so the transportation is set by the Singapore people.

·        controlling the primary distribution is not too difficult.

2)  Secondary distribution

·        Difficult to organize and monitor.

Indonesia need to add gas stations 7 times. primary energy -> still fossil industry.

Function Of BPH Migas :

supervise the implementation of the provision and distribution of Fuel Oil and Gas Transportation through Pipes, in a regulation so that the availability and distribution of Fuel Oil set by the Government can be guaranteed throughout the territory of the Unitary State of the Republic of Indonesia and increase the utilization of domestic natural gas.

There are 6 tasks of Oil and Gas BPH:

1)   Manage and determine the availability of fuel distribution.

2)  Regulate and establish national fuel reserves.

3)  Regulate and establish the joint use of    transport and storage facilities.

4)  Regulate and set the tariff for transporting  natural gas through pipelines.

5)  Regulate and set the price of natural gas for  households and small business.

6)  Regulating and establishing natural gas transmission and distribution business

Our operating reserves are 22 days. the entire amount of fuel owned by the entrepreneur is for sale.

Our national fuel reserves are zero (0). the national fuel reserve is 1.3 trillion (expensive).

Oil and gas BPH auction gas pipeline. it turns out the source of our natural gas population gathered in 1 place.

in determining tariffs, when we auction fuel tariffs, BPH will establish and issue tariff tolls. the toll fee we set based on the investment analysis.

The role of BPH Migas

Regulatory Body: Make the rules of the game healthy, reasonable and transparent
Supervisory Body: Overseeing the implementation of downstream oil and gas business activities

Dispute Resolution Body: Resolve disputes arising in business activities.

Downstream business activities of oil and gas

Fuel consumption = Stock—Last Stock – Export.

Distributor of fuel

BPH Migas issued UU NO. 22 of 2001, PP NO. 36 of 2004 and PERPRES NO. 191 in 2014

That distribution of fuel is sent by the transporter to the BBM Distributor one 3T (Remote, Outgoing and Outermost) and to the Standard Distributor.

 Sub distributor of fuel

Authority and Responsibility:

v Downstream Regulatory 3 for Oil and Gas.

-Supervision of appointment of Sub-dealer.

-Monitoring and evaluation activities of Sub-Distributors.

-Making a plan

-verify, designate and sub-channeling activities.

v Business entity (PT Pertamina / PT AKR CORP).

-provide suggestions for planning.

v Sub-dealer

Reporting on its activities to the local government.

Fuel pricing in Indonesia

Considerans

Government Regulation no. 30 of 2009 on Amendment to Government Regulation no. 36 of 2004 on Oil and Gas Downstream Business Activities.

Article 72 of Government Regulation no. 30 Year 2009

(Fuel and Gas Fuel Prices are regulated and / or stipulated by the Government)   

Conclusion

v The things that affect the selling price of fuel include:

a)   Frequency distribution of fuel

b)  Access and means of distribution of fuel

c)   Fuel availability

v Effectiveness and efficiency in the supply chain of fuel distribution greatly affects the selling price of fuel.

v Required a healthy market and compete so that consumers get fuel prices