Pertamina to raise price of LPG by 25%
Wednesday, March 13 2002 - 01:23 AM WIB
The state-owned oil and gas firm Pertamina plans to raise the price of by 25 percent to Rp 2,650 per kg to allow the company to reach ?break-even point? in the production of the gas product, according to deputy downstream director for marketing Tuty Anggrahini.
She was quoted by the Bisnis Indonesia daily as saying that at the current price level of Rp 2,100 per kg, Pertamina was still suffering a loss of Rp 900 per kg in the LPG production or around Rp 900 billion per year.
Tuty said that Pertamina was expected to no longer suffer such loss starting next year. She said that the price increase would be made ?soon.?
Tuty also added that so far LPG price sold to households here was still much cheaper compared to the price in neighboring countries like Singapore or Malaysia.(*)