Presidential Regulation on Fuel Gas for Road Transport

The President has issued Regulation No. 64 of 2012 on Supply, Distribution, and Price Determination of Fuel Gas for Road Transport (“Presidential Regulation”) as a means of energy diversification to secure the requirement for national energy. It applies to suppliers and distributors of fuel gas, the owners of public transport, and various governmental authorities of relevant sectors.

The Presidential Regulation focuses on the fuel gas used in road transport, namely the Compressed Natural Gas (“CNG”). CNG is defined as fuel gas that is compressed into containers with specific pressure for easy transport and storage (Art. 1 (2)).

The Minister of Energy and Mineral Resources (“Minister”) has the authority to determine the supply, allocation, and specification of CNG (Art. 3) in order to determine the CNG retail price (Art. 8 (1)) and monitor and verify stages of CNG (Art. 16). The retail price of CNG is determined by the Minister after a Coordination Meeting, which is led by Coordinating Minister of the Economic Affairs (Art. 8 (2)). The Minister also has the authority for the supply, distribution, and price determination of fuel gas other than CNG (Art 21).