Migas urges traders to limit fuel import to push biofuel consumption

By Godang Sitompul

The Directorate General of Oil and Gas (Migas) warned licensed fuel importers in the country to start reducing fuel import including high speed diesel to help push the consumption of biofuel in the country.

Director of Downstream Operations at the Migas, Muhammad Hidayat warned the fuel importers that they must follow the Minister of Energy and Mineral Resources Regulation No 25/20013 on the mandatory use of biofuel.

?The Migas has issued many recommendations for the import of diesel to the licensed traders to help meet demand from industries, miners and electricity producers. But considering there has been a mandatory use of biofuel, the Directorate is warning the traders to follow the regulation,? Hidayat told Petromindo.com Wednesday.

The statement came following complaint from a fuel trader that it?s now increasingly difficult to obtain permit from Migas for fuel import, raising concerns among the traders that their fuel supply contracts with the industrial customers could be eventually stopped.

Editing by Reiner Simanjuntak