Government to issue regulation to control fuel consumption

Jakarta (ANTARA News) - The Indonesia government will soon issue a regulation to control the use of subsidized fuel oils, Director General of Oil and Gas at the Energy and Mineral Resources Ministry Edy Hermantoro said on Thursday.

The regulation will be a revision of the energy and mineral resources ministrys regulation number 1 of 2013 on the control of fuel oil consumption.

The discussion of the draft regulation had been completed, he said, adding, "Its only to be signed (by the energy and mineral resources minister), probably today."

The revised regulation will serve as reference for the Downstream Oil and Gas Regulatory Body (BPH Migas) to distribute subsidized fuels on a non-cash basis, he said.

Edy added that the control of fuel consumption also required regional governments active participation since they received allocations of subsidized fuels.

"The regional governments can do so by means of instruments or calls," he said.

Previously, Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo said the government was prepared to launch a non-cash fuel distribution program.

The program required anybody who wanted to buy subsidized fuel oil at gas stations to hold a card.

The card can be either a debit card or an electronic card. Any fuel oil transaction will be automatically recorded by the bank.

The quota of subsidized fuels in the 2014 state budget is 48 million kiloliters, consisting of 32.45 million kiloliters of gasoline, 14.64 million kiloliters of diesel oil and 0.9 million kiloliters of kerosene.


Reporting by Kelik Dewanto