Pertamina gets approval to raise LPG price

State-owned oil and gas company PT Pertamina has received the government?s approval to raise the price of liquefied petroleum gas (LPG) sold in a 12-kg cylinder beginning next month.

State Minister for State Owned Companies Sofyan A. Djalil confirmed Tuesday that Pertamina would be allowed to raise the price of LPG in a 12-kg canister by Rp 100 (1 US$ = Rp 9,900) per kilogram per month until it reaches the market level.

With the rise in the price which is expected to take affect beginning next month, Pertamina will be able to gradually reduce the company?s loss from the sales of the 12-kg cylinder LPG, Sofyan said.

According to him, Pertamina suffers a loss of about Rp 6 trillion from the sales and distribution of the 12-kg LPG.

Pertamina?s spokesman Basuki Trikora Putra said Tuesday that Pertamina suffered a loss of Rp 2,854 per kg from the 12-kg LPG business. According to him, the price of LPG in the 12-kg canister which is now Rp 5,250 per kg should be raised to at least Rp 7,675 per kg to reach its market price. (kanti)