Govt to set special gas price for PLN and fertilizer firms

Energy and Mineral Resources Minister Darwin Zahedy Saleh said that the government planned to set a relatively low price for gas sales to state-owned electricity firm PT Perusahaan Listrik Negara (PLN) and fertilizer producers.

The government would first calculate the need of PLN and fertilizer producers before determining the special price, he said on Thursday.

?Giving support to PLN by providing it with cheap gas will lead to a lower electricity price and, consequently, subsidy for power is expected to decline,? Darwin said.

Other industries will not get such a special treatment, he said.

Now, industries in Indonesia can buy gas at a much lower price compared to the international market. This happens because the government cuts its share in the contractors' gas production. This is another of subsidy.

Eerly this week, Vice President Boediono called on industries to stop expecting that they will continue receiving cheap gas supplies. The government will no longer provide subsidies for gas sales, he said. (*)