Demand for LPG surges by over 300 percent

The demand for liquefied petroleum gas (LPG) in many parts of Java showed a drastic increase in September as the people raised their LPG purchases to anticipate a possible increase in the prices.

Husni Banser, the spokesman for Pertamina's Cilacap refinery plant, said that rush for LPG had taken place in many parts of Java as buyers raised their stock in anticipation on the price increase.

"The demand for LPG in Central Java more than tripled to 5,850 tons in September due to the unusually high demand," he said. He acknowledged that one of the LPG processing plant in the Cilacap refinery plant was overhauled in September but he said that the repair work had not effected the LPG supply because the stocks had been increased before the overhaul work was begun.

The overhaul works have been completed and the LPG processing unit has gradually returned to its normal operation. He also said Pertamina had not raised the retail price of LPG although many retailers have charged their customers far higher than the official prices.

The price of LPG for 12 kg-container has increased to about Rp 73,000 far higher than Pertamina's retail price of Rp 55,000. (*)