Govt turns down demand to lower gas price to US$1.3 per mmbtu

A government team rejected the demand from local fertilizer companies to lower the gas price to US$1.3 per mmbtu from the current price level of $2 per mmbtu, according to director general of oil and gas Rachmat Sudibyo.

Rachmat said late on Thursday that the team had to lower the gas price to $1.6 per mmbtu.

He said that lowering the price to $1.3 mmbtu would cause the state coffer to loss huge amount of tax revenue.

But Rachmat said that the final decision would be made by Finance Minister Prijadi Praptosuhardjo. (R. Amoros)