Govt to provide Rp 20t subsidies to buy LPG container and gas stove

The government is planning to provide Rp 20 trillion for the public to buy liquid petroleum gas (LPG) containers and gas stoves as part of the efforts to increase the use of gas and cut down the use of kerosene at households.

?Thereby, we hope the public will gradually use LPG instead of kerosene,? Minister of Energy and Mineral Resources Purnomo Yusgiantoro was quoted as saying by Kompas on Tuesday during his visit to an alcohol factory in East Java.

Using the subsidies, the government will provide three-kilogram containers for households.

The government will ask local LPG container producers to cancel plans to export their products in order to support the program. If necessary, the government would push for the imports of the containers.

?Furthermore, in order to secure LPG supplies in the country, we shall also build new (LPG) refineries,? Purnomo said, adding that today, LPG was produced in seven refineries with a combined annual output of 1.1 million tons.

According to Purnomo, the government has launched the buy-LPG-container-and-gas-stove campaign in Jakarta and will start the campaign in other big towns of the country in phases.

The government is seeking to reduce the public?s consumption of expensive oil products in order to cut down subsidies amid the soaring oil prices. For kerosene alone , the government has to provide Rp 42 trillion in subsidies per year. (*)