NEWS - ASIA, MIDDLE EAST & AFRICA BP to develop Indonesian Ho Chi Minh City to build over 400 fuel stations by 2030 retail fuel business Oil major BP has signed an agreement with Indonesian petroleum and chemicals logistics company AKR Corporindo for the joint development of a “differentiated” domestic fuel retail business, BP said in a statement. The joint venture will form a company, PT Aneka Petroindo Raya, which will operate as BP AKR Fuels Retail, and expects to open its first retail site in Indonesia in 2018, the statement said. “We are delighted to be working with AKR to help meet Indonesia’s growing demand for fuels and provide superior convenience offers,” BP downstream chief executive Tufan Erginbilgic said. Deputy chairman of the Ho Chi Minh City People’s Committee Tran Vinh Tuyen has approved a project to build an extra 407 new filling stations by 2030, taking the total number in the city to 939. The project, aims to meet the growing demand for petrol, a result of the countries’ increasing population. The Department of Industry and Trade forecast that the city’s petrol consumption will reach 2.35 million cubic meters in 2020, rising to 3.25 million in 2025 and nearing 4.3 million five years later. According to the project, HCMC will give priority to developing new filling stations in the outskirts of the city, where more land is available. The new facilities will meet requirements of the petrol industry and attach to relevant commercial infrastructures comprising markets, supermarkets, convenient stores, seaports, logistics centers and parking lots. The connectivity between petrol stations and development of the other infrastructures aims to contribute in building a smart city to better serve its citizens. By the end of 2016, the city had 638 filling stations including 532 active ones and 106 stations having stopped operation or been removed, reported the Department of Industry and Trade. 25,000 petrol pumps in India to shut shop on Sundays A section of petroleum dealers in India have said they will shut their retail outlets every Sunday starting May 14. in a bid to pressure the government for higher commission. The Consortium of Indian Petroleum Dealers (CIPD) this month asked members to shut shop on Sundays, in line with the prime minister’s vision to reduce fuel consumption. The association claims to have more than 25,000 petrol pumps covering south and Maharashtra. All India Petroleum Dealers’ Association has since released a statement distancing itself from the decision. The move by CIPD comes at a time when the government is still to make a decision on raising dealer’s commission. CIPD president A D Sathyanarayan has said that aside from emergency vehicles, fuel will not be available on Sundays. The association is also considering eight-hour working days from May. President of All India Petroleum Dealers’ Association Ajay Bansal said, “This will create panic. The association that has called for such a move has presence in only Kerala, Tamil Nadu, Karnataka, and Maharashtra. We are not supporting this decision, while we also have the same demands to increase (dealer’s commission).” North Korea drivers scramble for fuel as services limited Car users in the North Korean capital, Pyongyang, were scrambling to fill up their tanks this month as gas stations began limiting services or even closing amid concerns of a spreading shortage. A sign outside one station in the North Korean capital said sales were being restricted to diplomats or vehicles used by international organisations, while others were closed or turning away local residents. Lines at other stations were much longer than usual and prices appeared to be rising significantly. The cause of the restrictions or how long they might last were not immediately known. North Korea relies heavily on China for its fuel supply and Beijing has reportedly been tightening its enforcement of international sanctions aimed at getting Pyongyang to abandon its development of nuclear weapons and long-range missiles. The issue was raised at a regular Chinese Foreign Ministry news conference in Beijing on 21 April after a Chinese media outlet, Global Times, reported gas stations were restricting service and increasing prices. A government spokesman gave an ambiguous response when asked if China was restricting fuel deliveries. One of China’s top North Korea scholars, Kim Dong-jil, director of the Center for Korean Peninsula Studies of Peking University, said he was not aware of restrictions on fuel, but said they are considered to be an option. Malaysian fuel stationS told not to trigger a price war Petrol station operators in Malaysian have been told they must not arbitrarily make sale offers at their premises which can trigger a price war, following the weekly announcement of ceiling prices from March 29. Domestic Trade, Cooperatives and Consumerism (KPDNKK) Minister Datuk Seri Hamzah Zainuddin stressed petrol station operators must seek the permission of the ministry before making offers. “We don’t want the offers to have elements of surprise which can make consumers feel cheated,” he said. Hamzah said KPDNKK had no problem if petrol station operators wanted to make offers, but it must follow the Standard Operating Procedure. From March 29, the ceiling price of fuel will be announced every Wednesday and come into effect after midnight. Boustead could refinance two bonds worth RM1.2b In Malaysia, Boustead Holdings is in talks with advisors to draw up a strategy to determine funding options for its two bonds worth RM1.2 billion and maturing in the next 12 months. Boustead in its annual report 2016 said the refinancing exercise is aimed at providing the group with further financial flexibility. Chief Executive Officer Tan Sri Lodin Wok Kamarudin said in tandem the group is expected to allocate around RM700 million in capital expenditure (Capex) for the coming year. “Core areas include the ongoing construction of Nucleus Tower in Mutiara Damansara and development of the Royale Chulan Cherating. “Capex will also be deployed for new BHPetrol service stations to expand our retail petroleum network,” he said. For the financial year ended Dec 31, 2016 (FY16) Boustead’s pre-tax profit rose by 175 per cent to RM740.4 million compared with RM269.2 million in 2015. However, revenue slipped three per cent to RM8.37 billion from RM8.66 billion previously, due to lower contribution from the heavy industries division. Moving forward, he said the year ahead was not expected to be rosy, with certain global geopolitical shifts impacting Malaysia. He said however, the group would weather these storms to deliver another set of good earnings. 8 erpecnews is published by McLean Events, Conferences and Media Ltd.
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