Increase in LPG prices begins effective today

Pertamina has increased in the price of liquefied petroleum gas (LPG) by Rp 1,800 per standard tube to meet the increase in the production cost. Special for Batam, the price of the LPG is increased by Rp 9,600 per tube.

Pertamina said that the new price which began effective on Friday (today) would enable the state owned oil and gas company to reach a break event point. ?Previously we always suffered a loss in the sales of LPG,? General Manager of Pertamina?s LPG and Special Products production, Iqbal Hasan.

He said that Pertamina had also lowered the price of the standard LPG tube by 35 percent to Rp 130,000 per tube from Rp 200,000 per tube in a bid to curb the sales of fake gas tube in the market.

Pertamina also announced that the price of Premium fuel for August is Rp 1,810 per litter (Rp 1,930 for industries), kerosene Rp 700 per litter (Rp 1,800 for industries), automotive diesel oil Rp 1,650 (Rp 1,720 for industries), industrial diesel oil Rp 1,650 (Rp 1,710 for industries) and bunker oil Rp 1,560 per litter (Rp 1,570 for industries).

Except for automotive diesel oil which rose by Rp 10 per litter and industrial diesel oil which dropped by Rp 10 per litter, prices of other fuel products remained the same as last month.

Separately Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that Indonesia planned to cut crude oil production to 1.15 million barrels per day next year from 1.27 million barrels per day at present.

The lower production target is made amid worries of possible drops in production of some oil producers in the country. (*)