Pertamina set to raise LPG price

State owned oil and gas company PT Pertamina will raise the price of liquified petroleum gas (LPG) sold in 12-kg containers because the government has refused to provide subsidies for the fuel.

 

Company commercial and marketing affairs director Achmad Faisal the company was planning to ask for the government's approval for the move.

 

He said Pertamina was sustaining losses arising from the difference between its selling price and import price of the fuel. 

 

The price of imported LPG is around Rp 7,000 per kg, while Pertamina's selling price to the public is Rp 4,250. Imports make up 15 percent of the country's total annual consumption which reach 1.05 million tons.

 

Meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro confirmed that the government would not provide subsidies for LPG sold in 12-kg containers. The government will only provide subsidies for LPG sold in 3-kg containers because  small people usually buys LPG in this type of container.

 

The government is promoting the use of LPG at households in order to reduce the consumption of heavily-subsidized kerosene.(godang)