Indonesia to limit LPG exports

The government has decided to limit the exports of liquefied petroleum gas (LPG) to boost the use of the fuel in the country as an alternative to kerosene.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Tuesday that the government through upstream regulator BP Migas would instruct the nation?s LPG producers not to extend their existing sales contract with buyers overseas.

Such measure will add LPG supplies in the country and thus enable the government to carry out its program of replacing highly-subsidized kerosene with LPG for household use.

The government expected to cut subsidies for kerosene, which now amounts Rp 42 trillion annually, by Rp 22 trillion thanks to the program, Purnomo said.

State oil and gas company Pertamina?s deputy director of marketing and commerce Hanung Budya Yuktiakto said on Tuesday that Indonesia consumes 1.08 million tons of LPG per year, while the country?s annual output reach 1 million tons, including 850,000 tons by Pertamina and 150,000 tons by production sharing contractors. The imports reach 80,000 tons annually.

?We don?t need to increase imports in order to support the government?s program of replacing kerosene with LPG,? he said. (Godang)