Pertamina lowers LPG price for businesses

Sate oil and gas firm PT Pertamina offered a price discount of 15 percent for the sale of liquefied petroleum gas (LPG) sold in a 50-kg container, which is widely used by businesses such as hotels, restaurants, hospitals, and luxury houses

With the 15 percent price discount, which will come into effect on Thursday, the price of the LPG in a 50-kg container will be Rp 6,804 (1US$= Rp 9,215) per kg, down from Rp 7,932 per kg at present. However, the price of the 50-kg LPG in Batam would be lowered to Rp 7,112 per kg, Pertamina said in statement.

Meanwhile, the price of the LPG in a 12-kg container is maintained at Rp 4,250 per kg.

Pertamina hoped that the price cut would help curb the switch of industrial and business customers to the 12-kg LPG containers, which are sold only for households.

In January 2008, Pertamina raised the price of LPG in 50-kg container by 35.5 percent to Rp 7,932 per kg. At the same time, the price of LPG sold in bulk (equal to 5,000 kg) for industrial consumers was also increased by 25.2 percent to Rp 7,329 per kg from Rp 5,852 per kg.

The growing price disparity has caused the industrial and business users to switch to the 12-kg container. This has resulted in the shortage of the supply in the LPG in the 12-container. The price of the LPG in the 12-kg container has since increased sharply in the market. (godang)