BP Migas fixes the price for PLN's LPG at US$400 per ton

Upstream regulatory body BP Migas has fixed the price of liquefied petroleum gas (LPG) for state owned electricity company PLN at US$400 per ton or equal to the market price level.

"We are able to supply all the LPG needs of PLN as long as the company buys the commodity at the market price," said Edy Purwanto, the agency's deputy for finance and marketing. "If PLN asks for a subsidy, it's up to the government to decide whether or not it will provide the subsidy," he added.

According to him, the price does not include the costs for transportation and degasification facilities. "If PLN agrees with the proposed price, we will then supply the LPG from the Bontang plant," he added.

PLN is modifying some of its diesel power plants in a bid to reduce the use of diesel oil which at present accounts for about 30 percent of the national consumption. The increase in the fuel prices has sharply increased the production costs of PLN's diesel power plants.(dino)