JAKARTA – Ministry of Energy and Mineral Resources (EMR) claimed, as the decreasing index of Means of Platts Singapore (MOPS) in gasoil since October 2014 directly made economical price disparity of diesel and biodiset larger. It needs to be evaluated to the Market Index Price Vegetable Fuel (MIP VF) which is mixed to the certain fuel.

Based on the press conference, Monday (2/3), Ministry of EMR had made a Decision of Secretary of EMR No 0726 K/12/MEM/2015 on February 27th, 2015. The substances of the Decision are:

1. MIP VF of Biodiesel which is mixed to Certain fuel should base on Export Reference Price of Crude Palm Oil (CPO) which Secretary of Trade has decided in one month before and it is accumulated to the numbers of CPO conversion to be biodiesel about 188 US$ with the conversion about 870 kg/m3.

2. the MIP VF of Bioethanol which is mixed to the fuel specially in duty should based on the Argus public price for Ethanol FOB Thailand, one month before and it is accumulated 14% of the domestic balancing index with the conversion about 788 kg/m3.

3. The numbers of MIP VF above should be decided in every single month and it is evaluated at least once a month by General Director of New and Renewable and Energy Conversion.

4. The Decision of Secretary of EMR No. 0726 K/12/MEM/2015 starts from 1 March 2015.

Ministry  of EMR explained, the formula of MIP VP was being considered by knowing the real condition of production cost of vegetable fuel which the biggest component is the material price of the vegetable fuel itself. (T3)