Levies slapped on gas piping in E. Java

State gas company PT Perusahaan Gas Negara's Surabaya branch has been complaining over the imposition of gas piping levies imposed by a number of regency administrations in the area.

As'ad, head of PGN Surabaya operation unit, said each administration slapped different levies, without consulting with PGN.

Sidoarjo regency administration, for instance, slapped Rp 500 per meter of piping per month, which is surely burdensome for PGN.

Moreover, PGN has a total of 430,000 meter of gas piping, covering the regencies of Gresik, Surabaya, Sidoarjo and Mojokerto - all subject to retributions.

"The imposition of retribution of Rp 500 per meter of gas piping line per month is surely burdening us, because we sell gas to household customers at subsidized prices," As'ad said.

He contended that PGN paid Rp 750 per cubic meter of gas from state oil and gas company Pertamina, and sell it at Rp 600 per cubic meter to household customers and Rp 920 per cubic meter to industrial and commercial customers.

Currently PGN has a total of 2,692 household customers, 55 commercial customers and 141 industrial customers.

"In this era of regional autonomy, we cannot refuse to pay local retribution. However, we demand that the tariffs must be set at a normal level so that we can develop gas distribution network," As'ad said. (*)