PGN announces another increase in gas prices
Tuesday, January 3 2006 - 02:07 AM WIB
State owned gas distribution company PGN announced on Monday an average 11 percent increase in the prices of gas sold to industrial users to US$5 per million British unit (MMBTU) from US$4.5 per MMBTU beginning January.
"The new price will be effective until the end of this year," PGN's president director WMP Simandjuntak said as reported by Investor Daily on Tuesday. He said that the price increase was made to cope with the surge in the company's operating costs.
Simandjuntak said that the new price was still relatively cheaper than the prices of diesel oil. According to him, the gas price of US$5 per MMBTU is equivalent to Rp 1,950 per liter of diesel oil. At present, the price of diesel oil to industries is about Rp 6,000 per litter.
The price increase was the second since October when PGN raised the price of gas sold to industries by about 10 percent to US$4.5 per MMBTU from US$3.9 per MMBTU. (*)