Pertamina raises LPG, unleaded gasoline prices

State-owned oil and gas company PT Pertamina is set to raise prices for liquefied petroleum gas (LPG) and unleaded gasoline on Sunday to compensate for higher world crude oil prices, an official said on Saturday.

"Prices of LPG, Pertamax and Pertamax Plus are not regulated by the government. We expect to increase profits from this raise, which will go to state coffers," deputy director for sales and marketing A. Faisal told a press conference.

"High world crude oil prices is the main reason for raising prices."

LPG price is being raised from Rp 3,000 (33 U.S. cents) to Rp 4,250, but in Batam the price is being hiked from Rp 3,500 to Rp 4,800 as LPG in Batam is still imported.

Meanwhile, the price of Pertamax is being raised from Rp 2,450 to Rp 4,000, and Pertamax Plus from Rp 2,750 to Rp 4,200.

Pertamax has research octane number (RON) of 92 while Pertamax Plus has a RON of 95.

Faisal also said that the hike was expected to attract more investors into the environmentally friendly fuel business. (*)