Pertamina imports four cargos of LPG to stabilize price

State owned oil and gas company Pertamina will import four cargos of liquefied petroleum gas (LPG) or equivalent to 7,200 metric tons in a bid to stabilize the price in the local market, Kompas reported on Wednesday.

"The imported LPG is expected to arrive in Indonesia this month," Pertamina's marketing and commercial director Arie Sumarno said in Jakarta on Monday. "We hope the imported LPG will be able to stabilize the price of LPG in the domestic market," he added.

Arie said that the price of the LPG in the overseas market reached about US$600 per metric ton, far higher than Pertamina's selling price of about US$420 per metric ton at home. "But we have to import despite the high price in order to stabilize the price in the local market," he added.

The retail price of LPG in the local market increased to about Rp 70,000 (about US$7) per 12 kg-container last month, far higher than Pertamina's selling price of between Rp 52,000 and Rp 55,000 per metric ton, due to fear over the shortage of supply.

According to Arie, the LPG price has returned to normal level in several cities especially Jakarta thanks to an increase in the supply. At present, Pertamina's LPG stock reaches about 18,000 metric tons, sufficient to meet the local demand. (*)