Government Ensures CNG Infrastructure is Ready

Government is ready to implement the restrictions on subsidized fuel oil (Bahan Bakar Minyak - BBM) and the transfer fuel usage into compressed natural gas or CNG (Bahan Bakar Gas - BBG). This will commence in April this year. Deputy Minister of Energy and Mineral Resources, Widjajono Partowidagdo, ensured that the conversion-related infrastructure has been prepared.

Compressed Natural Gas

LGV (Liquefied Gas for Vehicle) and CNG (Compressed Natural Gas) are fuel alternatives for the community besides Pertamax. If the policy of subsidized fuel restriction and conversion is applied, vehicles users other than public transportation, public services, and motorcycles are prohibited to use premium.

Widjajono said there shouldn’t be any a problem related to gas and Pertamax supply. As long as there is oil, Pertamax will always be available. The government only needs to produce more Pertamax than premium. "It is the same material (oil) used, so just need to reverse. If it used to be 20% pertamax, 80% premium, now should be 20% premium and 80% pertamax," he said.

The same condition will be applied to gas supply. "It is easier for gas. There shouldn’t be problem as there will be lifting terminal soon. There is an obligation for the contractors to prepare part of its production for transportation," said Widjajono.

The subsidized fuel restriction policy and conversion from fuel to CNG is waiting for the Presidential Regulation. Yusuf Gunawan, Special Presidential Staff for Food and Energy Affairs, said that the government has prepared the legal framework related to the conversion. Not only that, the government has also prepared plans related to the amounts of vehicles and fuel stations which will be built in the conversion target areas, and also prepare the supplies and allocation of gas.

Source: Kompas