- The Director-General of Oil and Gas ("Director-General") has issued Circular No. 14.E/HK.03/DJM/2021 on Provisions for the Distribution of Oil Fuel Through Distributors (“Circular”) in order to implement various provisions originally set out under Regulation of the Government No. 36 of 2004 and its amendments, Regulation of the Minister of Energy and Mineral Resources ("Minister") No. 13 of 2018, and Regulation of the Minister No. 5 of 2021.
- According to various provisions addressed under the above listed legal frameworks, oil fuel should be distributed in line with the following conditions: 1) Business Entities holding General Trading Business Permits ("BU-PIUNU") are required to supervise oil-fuel distribution activities carried out by distributors (Retail SPBU/SPBN), industry agents or other types of distributors to end-users; 2) Retail distributors can only distribute fuel oil to end-users and are prohibited from distributing fuel oil to retailers with the aim of generating a profit; 3) Distributors are prohibited from distributing oil fuel or selling oil fuel to BU-PIUNU; 4) When conducting oil-fuel distribution activities, distributors are entitled to receive a margin, fee, incentive or price reduction from BU-PIUNU; 5) BU-PIUNU are responsible for all distribution activities that are carried out by distributors.
- The Circular has been in force since 29 September 2021.
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