Pertamina to raise LPG price for industries
Friday, September 1 2006 - 02:24 AM WIB
PT Pertamina's deputy director of trade and marketing Hanung Budya said the state oil and gas company will increase the price of liquefied petroleum gas (LPG) for industry to Rp 6,800 per kilogram from the present Rp 4,250 per kilogram very soon, Kompas reported Friday.
The price hike is necessary to cut the losses of Pertamina because the present LPG price is far below than the market price. The share of the industry sector, which uses 50 kilogram gas containers, is 15 percent of the total national LPG consumption of one million tons.
Hanung said, if possible, the price hike will be effective from this year.
"Pertamina will bear the burden of subsidy in case of 12 kilogram LPG containers," Hanung said.
The government has decided that the state will provide subsidy to LPG price, including the program of shifting from the usage of kerosene to LPG. Pertamina has calculated that it will need Rp 1.3 trillion for LPG subsidy next year. (*)