Pertamina?s LPG production down 20 percent

Pertmina?s liquefied petroleum gas (LPG) production has dropped by about 20 percent during the last several days due to technical problems in a number of refineries.

Pertamina?s director for marketing Ari Sumarno said in Jakarta on Thursday that the Cilacap refinery had halted its operation due to turnaround, while a technical problem had also caused Balikpapan refinery to be out of service for a week.

He said that Pertamina plans to import between 5,000 tons and 6,000 tons of LPG on October from Singapore, Malaysia and Thailand to cope with the decline in the LPG stocks in the local market.

Arie said that the decline in the stock caused by the drop in the production had led to an increase in retail prices of LPG in several major cities in the country particularly in Jakarta.

?In addition due to the higher transportation costs, the lower stocks have also prompted retailers to increase the retail prices of LPG,? he added. ?Pertamina has yet to officially increase the LPG prices despite the surge in the fuel prices. We don?t have any plan yet to raise the LPG price. Perhaps, next year,? he said.

The price of LPG for 12 kg-container has increased to about Rp 73,000 m far higher than Pertamina?s retail price of Rp 55,000. (dino)