PGN insists on raising gas prices despite protests

State-owned gas distributor PGN has insisted on raising gas prices some time in August this year despite protests from the company's industrial buyers especially ceramics producers.

 

PGN's president director Sutikno said in Jakarta on Sunday that the increase in the gas prices could not be avoided because Pertamina as the gas supplier had begun to increase its gas prices to PGN.

 

He said that Pertamina, PGN's main supplier, had increased the price of its gas to US$4 per british thermal unit (MMBTU) from $2.5 per MMBTU in April. "As Pertamina's new price had begun effective in April, PGN should ideally begin the price increase in August," he said as quoted by Kontan daily.

 

Sutikno said that the price increase had not been decided but he added that the company would likely increase the price from $5 per MMBTU at present to $6 or at least to $5.5 per MMBTU.

 

PGN's main industrial buyers particularly producers of ceramics had protested PGN's prince increase plan, saying that the company should delay its plan until it could ensure supply stability. (*)