Govt asks PGN to delay gas price increase

The government is asking publicly-listed gas company PT Perusahaan Gas Negara (PGN) to delay its plan to increase gas price, saying the state owned company needed to consult with the government on the plan.

 

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Luluk Sumiarso said on Tuesday that under the Oil and Gas Law No: 22/2001, the government should be involved in determining gas price, except for gas for households.

 

He made the statement following an announcement by PGN’s president director Soetikno on Monday that the firm would raise gas price by 10 percent to US$5.5 per million British thermal unit (MMBTU) from $5 per MMBTU at present starting August this year.

 

PGN needed to raise the price because gas producers from whom PGN get its gas had raised the selling price of their products.

 

Soetikno said he was surprised at Luluk’s statement.

 

“PGN will talk with the government to get an explanation,” he said. (Godang)