Industry association disagrees with PGN's plan to increase gas price

The Indonesian Association for Ceramics Producers (Asaki) has denied report that it has agreed with state gas distributor PT Perusahaan Gas Negara's (PGN) plan to raise the gas price for industry by 10 percent.

 

The association’s chairman Achmad Wijaya said in Jakarta Tuesday that PGN had made a unilateral decision to raise the gas price, calling on the state owned company to review its plan.

 

“I think PGN has to review its plan to raise the gas price for industry which Soetikno (the company's president director) announced during a hearing with House of Representatives (DPR) members,” he was quoted by Bisnis Indonesia Wednesday.

 

If the gas price is raised at a time when production activity is low, then ceramics production cost is expected to increase by 20 percent, he said.

 

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Luluk Sumiarso has also asked PGN to delay its plan to increase gas price, saying the state owned company needed to consult with the government on the plan.

 

Sutikno announced during the hearing with the House the company's plan to increase its gas price for industrial users by 10 percent to US$5.5 per million British thermal unit (MMBTU) in August this year. He assured the House members that the majority of the industry had agreed with the plan. (*)