Gas prices for fertilizer firms cut by 25 percent
Monday, July 31 2000 - 04:00 AM WIB
An inter-departmental team assigned to set gas prices for fertilizer firms has decided to cut down gas prices for fertilizer companies by 25 percent to US$1.20 per Million Metric British Thermal Unit (MMBTU) of natural gas.
The director general of chemical and forestry industries, Gatot Ibnu Santosa, said that the new gas prices for fertilizer companies should benefit the fertilizer firms and also farmers.
"The inter-departmental team has agreed with US$1.20 per MMBTU of gas. We are now waiting for a finance minister decree," he said over the weekend.
"If this new price is approved, the competitiveness of our fertilizer companies will improve and they will be able to ensure domestic supply of fertilizers," he added.
The president of fertilizer firm PT Pupuk Kaltim in East Kalimantan, Syaiful Amir, said the $1.20 per MMBTU of gas was still a bit more expensive compared with gas prices set in other countries that produce gas. Nevertheless, he welcomed the cut in gas prices.
Currently, gas prices for domestic fertilizer firms range from $1.50 to $2.00 per MMBTU of natural gas.
Pupuk Kaltim, for instance, pays two different gas prices for its fertilizer plants, namely $1.00 per MMBTU for Kaltim 1st, 2nd, 3rd plants, and $1.85 per its POPKA unit.
PT Sriwijaya in Palembang pays $1.50 per MMBTU of gas for Pusri-IB plant and $1.85 for the other three fertilizer plants.
PT Pupuk Kujang, PT Pupuk Iskandar Muda, and PT Asean Aceh Fertilizer all pay US$1,0 per MMBTU of gas for their fertilizer plants, while PT Petrokimia Gresik pays US$2.00 per MMBTU of gas. (*)