Regulation Bans Premium and Solar Fuel for Government-owned and Mining and Plantation Vehicles

Minister of Energy and Mineral Resources (ESDM) Regulation No. 12 of 2012 on Petroleum Fuel Consumption Control (Regulation) imposes a ban on consumption of certain subsidized fuels by Government Vehicles and Mining and Plantation Transportation Vehicles. It implements Presidential Regulation No. 15 of 2012 on Retail and Consumer Prices of Certain Petroleum Fuels (Bahan Bakar Minyak), in particular Article 5, which stipulates the gradual limitation of subsidized fuel consumption.

The Regulation is part of the Government’s national policy to curtail subsidized fuel consumption. It is the first tranche of a series of ESDM Regulations supporting this policy.

The Regulation is of interest to those using state-owned vehicles as well as those in the mining and plantation sectors currently using Solar, a diesel fuel produced by the state-owned petroleum company Pertamina, to fuel their cargo vehicles.