Pertamina to raise LPG price by more than 10% in 2003

State oil and gas firm Pertamina said on Friday it had planned to gradually raise the price of liquefied petroleum gas (LPG) for the domestic market next year so it will reach the economic price level of Rp3,100 (US$=Rp9,000) per kilogram.

Pertamina currently sells LPG at Rp2,400 per kilogram.

The company will increase the price of LPG by 10 percent sometime in 2003, said Pertamina?s LPG and special production general manager M. Iqbal.

?It will be further increased until it reach the economic price level of Rp3,100 per kilogram, expectedly by the end of next year,? Iqbal told reporters.

He said at the current price level, the profit margin received by the distributors was so small. As the consequence some distributors could reduce the volume of the LPG tube. "Due to the same reason, the sales agent sold the LPG above the official price," he added.

In July of this year, Pertamina raised the price of LPG by 15 percent, from Rp 2,100 to Rp2,400 per kilogram despite mounting protests from the Indonesian Consumers Foundation (YLKI). (godang)