Wacik signs regulation on fuel storage, distribution

By Puspita Maylana Devi

Energy and Mineral Resources Minister Jero Wacik has issued a new regulation in revision to the Ministerial Regulation No.16/2011 on fuel distribution activities, which requires a separation between storage and distribution businesses.

The new legislation, Ministerial Regulation No.27/2012, is immediately in effect after it was signed on October 30. Under the new regulation, a company can no longer act as both fuel storage provider and distributor.

It said ?business entities holding the license to store fuels but have also been appointed as fuel distributors have until October 31, 2013, to decide its line of business, be it as fuel storage provider or distributor.?

For companies holding the storage business license and are not engaged in the distribution line, they must report to the Minister through a Director General the appointment of their distributors on October 31, 2013, at the latest.

Editing by Dadan Wijaksana