Govt asks BPH Migas and PGN not to raise gas prices

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has asked oil and gas down stream sector’s regulating body BPH Migas and the state-owned gas utility PT Perusahaan Gas Negara Tbnk (PGN) to drop plan to raise prices of gas for households and small and medium-scale companies, Investor Daily reported on Tuesday.

The paper quoted the minister as saying that it was now not the right time to raise prices of gas as the government was about to raise fuel prices in a bid to reduce fuel subsidy.

“There should be a complete study. Don’t create a situation where, you have gasoline prices and gas prices are increased," Purnomo said said in Jakarta on Monday.

Purnomo mentioned that he had already informed BPH Migas and PGN about this matter.

He also said that move to raise the prices of gas would not go in line with the government's campaign to push the use of more gas at home and reduce dependency on fuel-oil products.

“We hope gas can become a substitute to fuel," he said.

Meanwhile, PGN president director WMP Simandjuntak said his company will accept the government’s suggestion not to increase the gas prices.

“We respect the government’s decision," he said.(*)