Jakarta — The government believes that high pipeline tariffs for transporting natural gas are among the reasons industrial gas prices remain high. On Monday, 10 November, Minister of Energy and Mineral Resources Bahlil Lahadalia emphasised the need for a comprehensive evaluation of the components of toll fees to ensure their determination is more transparent and efficient.
The instructions were conveyed during the inauguration of the new Chair and Members of the Downstream Oil and Gas Regulatory Agency (BPH Migas). In addition to being asked to strengthen supervision of subsidised fuel prices, BPH Migas is now tasked with ensuring that gas transportation tariffs do not become an additional burden on industry.
According to Bahlil, a number of gas transportation tariffs have reached their break-even point (BEP), but they have not yet been reduced. “One of the reasons why our gas is expensive is related to the high toll fees. After recalculating the BEP, don’t make it expensive anymore,” he said.
He added that inefficient tariffs would burden businesses and hamper investment. Therefore, BPH Migas was asked to restructure tariffs so that they would not only benefit gas infrastructure operators but also have a positive impact on user industries.
“What is already good, please continue to do so; what is not yet good, please improve it. We must be able to achieve efficiency,” said Bahlil.
He believes that reducing toll fees will make gas prices more competitive. As a result, domestic industries can grow, the competitiveness of national products will increase, and the energy downstreaming agenda will progress more strongly. “With low toll fees, industry will flourish,” he said.
On the other hand, Bahlil also requested that BPH Migas maintain fuel distribution ahead of the 2025 Christmas and 2026 New Year holidays, especially in frontier, outermost, and disadvantaged (3T) areas. According to him, fuel supplies ahead of major holidays often experience disruptions, so they must be anticipated in advance.
“We must establish a competent team to prevent undesirable incidents from occurring. Fuel supply, particularly in remote, isolated, and disadvantaged areas, must be equitable with that in Java,” stated Bahlil.
BPH Migas is now led by Wahyudi Anas as Chairman, with eight committee members: Arief Wardono, Bambang Hermanto, Baskara Agung Wibawa, Eman Salman Arief, Erika Retnowati, Fathul Nugroho, Harya Adityawarman, and Hasbi Anshory. (Hartatik)
Banner photo: Minister of Energy and Mineral Resources Bahlil Lahadalia. June 11, 2025. Source: MEMR
