How are automobile fuel quality standards guaranteed? Evidence from Indonesia, Malaysia and Vietnam

Abstract

This paper aims to demonstrate the governance of gasoline/diesel supply policies and fuel quality management policies in Asia (Indonesia, Malaysia and Vietnam). We highlight two aspects of fuel quantity and quality management by looking at 1) automobile fuel supply policy and refinery development, and 2) emission regulation and fuel quality monitoring systems (FQM). This research allows us to visualize emission regulation time schedules with refinery updates and fuel quality regulations (Tables 2, 3 and 4). We composed specific data from the real world to create tables on the time schedule from refinery update, vehicle emission introduction to fuel quality. This enables us to understand why fuel quality regulations were delayed in the past and when they will be improved in the future, from a realistic point of view. We also visualized the flow of FQM operation (Figs. 1, 2 and 3) which can be developed from the different market structure of each country. FQM can be summarized as 4 incentives and disincentives: trace causes, sample size, frequency of inspection and strict punishment as a design of FQM operation. Our specific case studies may suggest policy direction and influence scenario analysis on fuel quality improvement.

Keywords

• Air quality
• Vehicle emission
• Fuel quality regulations
• Fuel quality monitoring
• Asia