Indonesian Political, Business & Finance News

BPH Migas Proposes Adjustment to Subsidised Fuel Purchase Limits

| | Source: REPUBLIKA Translated from Indonesian | Energy
BPH Migas Proposes Adjustment to Subsidised Fuel Purchase Limits
Image: REPUBLIKA

The Downstream Oil and Gas Regulatory Agency (BPH Migas) has proposed adjusting the volume limit for purchasing subsidised fuel for each vehicle. The measure is deemed necessary to curb the misuse of subsidised fuel while ensuring its distribution is better targeted.

BPH Migas Head Wahyudi Anas stated that evaluating the purchase volume is one of the steps that needs to be taken amid the increasing misuse of subsidised fuel in various regions. However, this policy requires a revision of Presidential Regulation (Perpres) No. 191 of 2014.

“We also agree with evaluating the volume of fuel purchases in order to reduce the intensity of large-scale and continuous fuel purchases,” Wahyudi said during a hearing with Commission XII of the Indonesian House of Representatives at the Parliament Complex in Senayan, Jakarta, on Thursday (16/7/2026).

According to him, the current regulations still group consumers based on vehicle type, such as four-wheeled vehicles for private transport, public transport for goods and passengers, and vehicles with six or more wheels. This classification is considered too general and needs to be detailed so that distribution oversight is more effective.

“A revision of Perpres 191 of 2014 needs to be carried out. The classification is very minimal and this indeed needs to be detailed,” he said.

Wahyudi explained that BPH Migas, together with Gadjah Mada University (UGM), has been reviewing the revision of the Perpres since 2022. However, to date, the proposal has not yet received approval.

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