All oil distributors obliged to use bio fuel beginning May 1

The Energy and Mineral Resources Ministry has required all companies involved in the distribution and the sales of fuels to use bio fuel to support the government?s plan to reduce oil fuel consumption.

The ministry?s director general for renewable energy and energy conservation, Kardaya Warnika said in Jakarta on Thursday that based on a consensus made during a meeting attended by companies involved in fuel distribution and retailing on Feb. 15, bio fuel content in subsidized fuel should reach at least 2 percent, while the bio fuel content in subsidized fuel should reach 7.5 percent. The mandatory use of the bio fuel will begin effective in May 1, this year.

"A number of foreign fuel retailers have objected the policy but they have to abide by the rule,? Kardaya said. ?They should be prepared because the regulation on the matter was issued in 2008,? he said quoted by Kompas.

According to the regulation, all fuel distributors and retailers as well as end-users are obliged to use bio fuel in order to help lessen the country?s dependence on oil fuel. Kardaya said oil distributors and retailers that do not abide by the regulation will be given a warning letters.

If they still do not use bio fuel as required after 30 days of the issuance of the warning letter, their permits will be suspended for up to three months. If they continue to ignore the regulation, the government can revoke their permits. (*)t