Ministry to distribute circular on subsidized fuels

By Nellawati

The Energy and Mineral Resources Ministry will issue a circular detailing a recent regulation on the limitation in the use of subsidized fuels, to avoid confusion and misinterpretation.

The Ministerial Regulation No. 01/2013 on the use of subsidized fuels stated that vehicles owned/controlled/leased by companies holding license of mining/agriculture business operation are banned from consuming subsidized fuels.

Exempted from this regulation are vehicles that operate in downstream or distribution sector, such as the ones that transport the mining/agriculture products out of ports.

However, the regulation has caused misinterpretation, as many petrol stations refuse to serve vehicles operating in ports, according to Director General of Oil and Gas A. Edy Hermantoro.

?That?s why we plan to issue a detailed explanation on who are and are not allowed to consume subsidized fuels especially in relation with mining/agriculture operation,? Edy said last week, accompanied by downstream regulator BPH Migas Chairman Andy Sommeng.

Editing by Dadan Wijaksana