Pertamina Patra Niaga urges controls as subsidised LPG use surges
Wednesday, January 28 2026 - 11:53 AM WIB
By Cepi Setiadi
PT Pertamina Patra Niaga, the fuel-trading arm of state-owned oil and gas company PT Pertamina, has raised concerns over the continued surge in subsidised liquefied petroleum gas (LPG) consumption, warning that the trend is becoming increasingly difficult to control without stricter regulatory limits.
The issue was highlighted by Pertamina Patra Niaga Vice President Director Achmad Muchtasyar during a hearing with the House of Representatives Commission XII on Tuesday (Jan 27).
Achmad said consumption patterns for subsidised LPG differ markedly from those of subsidised fuels. Since 2023, the LPG quota has been repeatedly revised upwards in line with rising distribution volumes.
“Subsidised LPG consumption has consistently increased and the quota has been revised every year since 2023. Looking ahead to 2026, if distribution is left uncontrolled, LPG distribution is projected to rise by around 3.2% from the allocated quota,” Achmad said.
Under an uncontrolled distribution scenario, subsidised LPG volumes could increase from around 8 million metric tonnes to 8.7 million metric tonnes. By contrast, with tighter controls and usage restrictions in place, the increase is expected to be limited to about 300.000 tonnes.
Against this backdrop, Pertamina Patra Niaga is seeking support from Commission XII to accelerate the issuance of regulations governing the use of subsidised LPG, including more detailed targeting of beneficiaries based on income deciles. Such provisions were previously outlined in Presidential Regulation No. 104/2007, but are now seen as requiring further refinement and clarification.
“We hope more comprehensive and detailed regulations can be introduced so that subsidised LPG consumption can be better managed and controlled, and potentially reduced,” Achmad said.
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Meanwhile, Achmad noted that distribution of subsidised diesel remains relatively under control. In recent years, diesel distribution has increased by an average of around 1.8% annually against government-set quotas. In 2025, however, there was a tendency for realised distribution to fall about 1.6% below the allocated quota.
For 2026, Pertamina Patra Niaga is projecting a potential overrun of the subsidised diesel quota, driven by additional demand from government programmes that were not fully factored into the original allocation.
“These include diesel demand for post-disaster response, the national salt production development programme, the Merah Putih Fishermen Cooperative programme, and the Food Brigade programme,” Achmad explained.
He added that the scale of the additional diesel demand will continue to be evaluated and could serve as the basis for a quota revision if necessary.
As for other subsidised fuels, including kerosene and Pertalite gasoline, Achmad said distribution remains relatively secure and within government-set quotas. In fact, a slight decline between the allocated quota and projected realisation is expected in 2026, although the difference is not significant.
Editing by Reiner Simanjuntak