Pertamina to increase LPG price by about 60 percent

State owned oil and gas company Pertamina will raise the price of liquefied petroleum gas (LPG) for industrial users by about 60 percent to about Rp 7,000 per kg from about Rp 4,250 per kg at present to cope with the surge in the operating costs, Kompas reported Thursday.

Pertamina's spokesman Muhammad Harun said in Jakarta on Wednesday that the increase was also needed as an adjustment to the sharp increase in the price of LPG in the international market.

"With the surge in the crude oil price, the price of LPG has also increased to about US$700 per ton," he said, adding that Pertamina which also imported part of its LPG needs had suffered operating loss of about Rp 28 billion from the sale of LPG because the current selling price was still far below the production costs.

The last increase in the LPG prices was made in December, 2004 when Pertamina raised the price of LPG to Rp 4,250 from Rp 3,000 per kg. (*)