VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Indonesian government, through the Oil and Gas Downstream Regulatory Agency (BPH Migas), has assigned PT Pertamina Patra Niaga and PT AKR Corporindo to distribute 15.1 million kiloliters (kl) of diesel fuel in 2022.

"We have taken into account the aspects of public demand and government fiscal capacity in determining the final quota," the agency's head, Erika Retnowati, stated in Jakarta on Saturday.

The three main variables taken into account in determining the annual quota are the regional governments' report on the proposed diesel fuel quota; the two companies' diesel fuel distribution realization report in 2021; and the final formula determined through deliberations among relevant stakeholders, she explained.

Apart from distributing 15.1 million kl of diesel fuel, the government will also distribute 480 thousand kl of kerosene this year, she said.

The regulatory agency has allowed Pertamina Patra Niaga and AKR Corporindo to adjust the distribution quota in the event of a sudden diesel fuel demand hike or disruption in the distribution line, provided that the adjustment will not affect the total quota assigned for the region, Erika stated.

If the companies decided to modify the distribution quota, they are necessitated to inform BPH Migas at the latest a month after the modification was made, the agency's head remarked, adding that the report is necessary to ensure the special fuel -- the grouping for diesel oil and kerosene -- will be properly distributed only to eligible residents.

The agency's committee meeting also determined that the distribution of diesel fuel and kerosene that surpassed the assigned quota will be regarded as the distribution of a general fuel instead of the special fuel type, she noted.

Assigning special oil distribution tasks to companies aligns with BPH Migas' duty to ensure nationwide availability of oil and gas and proper distribution of the special fuel type to eligible residents, Erika noted.

The agency is also tasked with evaluating diesel fuel consumption and disseminating information about the government regulation to relevant stakeholders and the industry, she added.  (Antaranews)