Pertamina to increase LPG price by 17.5%

State owned oil and gas company Pertamina will raise the retail price of Liquefied Petroleum Gas (LPG) to Rp 5,000 per kilogram from Rp 4,250 per kilogram at present, Kompas reported on Saturday.

With the planned increase, LPG with a 12 kilogram-container will sell for about Rp 60,000.

General Manager of Pertamina's Domestic Gas Department said that the price of the LPG would be increased to meet the increase in the price of the natural gas in the international market.

"Based on our initial calculation, the rise in the production cost will result in the increase in the LPG price to Rp 5,000 per kilogram," he said.

The increase will be the first this year. In 2004, Pertamina increased the price of LPG twice to meet the increase -in the price of the natural gas. (*)