LPG prices will still be determined by Pertamina: Purnomo

The government will not be involved in deciding the prices of liquefied petroleum gas (LPG) but, instead, let state oil and gas company Pertamina decide the prices.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Friday that Pertamina had the authority to determine the prices of LPG because unlike the Premium gasoline, diesel oil and kerosene, the sale of LPG is not regulated by the government.

The government is campaigning for the wider use of LPG by households in order to reduce the use of highly-subsidized kerosene. Subsidy for kerosene is expected to reach Rp 54.7 trillion this year.

"The government will only provide a subsidy for the sales of gas stoves and gas containers. The LPG will be still sold at a market price," he said, following a limited cabinet meeting on economy.

In the limited cabinet meeting led by Vice Presient Jusuf Kalla, the government agreed to gradually increase LPG supply from about 1.08 million tons at present to 5.7 million tons a year in order to support the LPG conversion program. (Godang)