Contributions for Oil Fuel Supply and Distribution, and Gas Transportation Through Pipelines

On July 8, 2019, the Government issued Government Regulation No 48 of 2019 on Amounts and Utilization of Contributions of Business Entities in the Business Activities of Fuel Oil Supply and Gas Transportation Through Pipelines (“GR 48/2019”). GR 48/2019 revokes Government Regulation No. 1 of 2006 dated January 30, 2006 on Levy Amounts and Use of Contributions of Business Entities in the Business Activities of Fuel Oil Supply and Distribution and Gas Transportation Through Pipelines (“GR 1/2006”).

The summary of pertinent provisions of GR 48/2009 are set out below.

♦  Contributions Payment

Business Entities that (i) supply and distribute oil fuel (BBM-Bahan Bakar Minyak) or (ii) transport gas through pipelines, are required to pay contributions to the BPH Migas.

The contributions for the oil fuel (BBM) supply and distribution is based on the volume that is sold and covers aviation gasoline, aviation turbine, gasoline, gas oil kerosene, diesel oil, and fuel oil. The contributions payable for the gas transportation are based on the volume that is transported through pipelines on the transmission routes or distribution network areas.

♦  Contributions Amounts

 The contributions amount that is required to be paid for the supply and distribution of oil fuel (BBM) will be as follows:

The sales price above is excluding Value Added Tax (VAT) and Motor Vehicle Fuel Tax.

The contributions amount to be paid for the transportation of gas through pipelines is based on the multiplication of the natural gas volume amount realization which is transported through pipelines and the natural gas transportation tariff per thousand standard cubic feet (MSCF) and the result will be multiplied with a percentage amount which is as follows:

The contributions amount for the trading of natural gas will be as follows:

Gas Volume (in MSCF) or Gas Energy (in MMBTU) x Sales Price x 0.25%

 The contributions shall be paid monthly.

September 18, 2019