Ceramics producers criticize PGN over gas price increase

The Association of Indonesian Ceramics Producers (Asaki) has strongly criticized the state owned gas distribution company PGN for its decision to raise the prices of gas sold to the country?s ceramic producers, Suara Karya reported on Saturday.

The association?s secretary general Zulfikar Lukman said in Jakarta on Friday that PGN?s recent move to raise the prices of gas and the toll fee (pipe renting fee) without a prior warning had shocked most of the association?s members.

?We should be given a time to adjust the new prices,? he said. The sudden increase in the gas prices and the toll fees had jeopardized the operation of ceramic producers because they had no time to make an adjustment.

In its latest move to reduce the swelling operating costs, PGN raised this week the price of gas sold to ceramics producers by 17.7 percent to US$3.30 per MMBTU from US$2.90 per MMBTU. The toll fee for the use of the pipelines was also increased Rp 450 from Rp 295.

As the ceramics producers would need least 16 hours to stop the gas supply, they should be given a waiting period whether or not they would continue the contracts with the new prices, he said. (*)