Pertamina raises LPG prices

State-owned oil and gas company PT Pertamina has raised the prices of liquefied petroleum gas (LPG) in both 12-kg and 50-kg cylinders as an adjustment to surging production costs and higher crude oil prices.

Beginning August 25 (today), LPG in a 12-kg cylinder is sold at Rp 5,750 (1 US$= Rp 9,140) per kg or Rp 69,000 per cylinder, an increase of 9.5 percent from Rp 5,250 per kg or Rp 63,000 per cylinder previously.

Pertamina also raised the price of LPG in a 50-kg cylinder to Rp 7,255 per kg or Rp 362,750 per cylinder from Rp 6,878 or Rp 343,900 previously. However, the price of LPG in a 3 kg cylinder remains the same at Rp 4,250 per kg or Rp 12,750 per cylinder.

Pertamina said the price adjustment was needed due to the higher crude price in the world market and an increase in the company?s operating costs.

According to the company, the average price of LPG in the world market has increased to US$858 per ton or Rp 11,400 per kg due the surge in the crude oil prices.

In order to reduce its losses from the LPG sales, Pertamina plans to increase the price of the 12 kg-LPG by Rp 500 per month until it reaches its market price. The price of 50-kg LPG will be also increased gradually to reach market price. (godang)