Govt asked not to raise gas prices for fertilizer makers

The government should not increase prices of natural gas sold to fertilizer producers to prevent the increase in the farming costs, according to Ahmad Farhan Hamid, a member of the House of Representatives.

Speaking to Suara Karya during his visit to Lhokseumawe, Aceh, Farhan said that the prices of gas sold to fertilizer producers should be maintained at the current level although it has been much lower than the average prices of the liquefied natural gas sold by Pertamina.

During his trip, Farhan visited PT Pupuk Iskandar Muda, PT Asean Fertilizer Plant and PT Arun NGL.

The price of natural gas sold to fertilizer company is about $1 per million British thermal unit (MMBTU), while the price of LNG is about $3 to $4 per MMBTU.

He said that although the price of gas sold to fertilizer companies is much lower, Pertamina?s revenues from the sales of gas from fertilizer companies are far higher than those received from the sales of LNG.

Pertamina said recently that it planned to increase the price of gas sold to fertilizer producers to between $1.5 and $2 per MMBTU. (*)