Pertamina wants to be named sole distributor of LPG

State-owned oil and gas company Pertamina has asked the government to officially appoint the company as the sole distributor of liquefied petroleum gas (LPG) to be sold as part of the government's LPG-kerosene conversion program, Investor Daily reported on Thursday.

Pertamina's president director Ari Soemarno said in Jakarta on Wednesday that he had sent a letter to Coordinating Minister for Economy Boediono to ask for the appointment of Pertamina as the implementing agency for the program.

"We want clarification whether or not we will be named as the implementer of the project," he said, adding that he also asked for a clarification if the LPG to be sold under the program would be subsidized or not.

Ari said that it would be difficult for the state-owned oil and gas company to carry out the program if the sales of the subsidy is not subsidized.

"If we are asked to sell the LPG with the current price, we will certainly be unable to carry out the program," he said.

At present, LPG is sold at Rp 4,250 per kilogram, still far below its market price which is expected to reach between Rp 6,000 and Rp 7,000 per kg. (*)