<article><p class="lead">Indonesia's state-owned refiner Pertamina has issued a spot tender to buy gasoline with a minimum Ron rating of 90 for the first time in response to a surge in domestic demand.</p><p>Pertamina — Asia-Pacific's largest gasoline buyer — is looking to purchase 200,000 bl of 90R for 1-5 November loading from Singapore/Malaysia or Karimun in Indonesia, or similar volumes of 90R for 1-10 November delivery to Cilacap in Indonesia. The pricing basis will be on either <i>Argus</i> or Platts' 92R spot assessments, whichever is lower. The gasoline should have a maximum sulphur content of 500ppm and maximum oxygen content of 2.7pc. The tender closed on 19 October but would remain valid until today.</p><p>The 90R gasoline is usually produced by Pertamina's domestic refineries through blending with other grades or naphtha, but a surge in demand thanks to a return of driving activity, coupled with an increase in requirements for higher-octane cargoes, has prompted the firm to look at imports.</p><p>Pertamina typically buys 92R and 88R gasoline cargoes through spot tenders and has imported 90R gasoline before but this is the first time it is seeking the grade through a spot tender, a trader said.</p><p>The firm has been trying to shift demand away from 88R towards 90R and above in recent years. Pertamina sells five fuel types at its retail stations — Premium, Pertalite, Pertamax, Pertamax Turbo and Pertamax Racing with a minimum Ron rating of 88, 90, 92, 98 and 100 respectively. </p><p>The volume spread between gasoline cargoes with a Ron rating above 90 and other motor spirit, presumably 88R, has increased considerably over the years (<i>see graph</i>). Indonesia imported an average 9.19mn bl/month more 88R gasoline than cargoes with a Ron rating above 90 in 2014, according to GTT data. But that trend reversed in the first half of 2021, with Indonesia importing an average 687,178 bl/month less 88R gasoline than cargoes with a Ron rating above 90. </p><p>Regional refiners have also noticed this shift in demand and have been tweaking their refineries to offer less of the 88R grade and more gasoline with a Ron rating above 90, an Asian refiner said.</p><p class="bylines">By Aldric Chew</p><p><div class="picture"><div><span class="pic_title">Indonesia's inter-Ron volume spread</span> <span class="units">bl</span></div><img src="https://argus-public-assets.s3.amazonaws.com/2021/10/21/indonesia21102021080948.jpg"></div></p></article>
