Pertamina to retain price of LPG this year

State-owned oil and gas company Pertamina will keep the price of liquefied petroleum gas (LPG) sold in a 12-kg container unchanged at least until the end of this year although the current price is still below the price level in the international market, Kontan reported Wednesday.

 

Wisnuntoro, the head of communication division of Pertamina, said in Jakarta Wednesday that Pertamina would not increase the price because the people's purchasing power was still relatively low.

 

He said that Pertamina would evaluate the price next year before making any decision to increase the price.

 

At present, Pertamina sells LPG with 12-kg container at Rp 4,250 per kg, much lower than the international price, which reaches about Rp 7,000 per kg. The company said it suffers a loss of about Rp 1 trillion in the first semester of this year from the LPG sales.

 

Pertamina also distributes LPG with 3-kg container as part of the government's program to convert the use of heavily subsidized kerosene with LPG. The price of LPG with 3-kg container is fixed by the government. (*)