PGN insists to increase gas price by 10 percent

State-owned gas distributor PT Perusahaan Gas Negara (PGN) has insisted to increase the gas price for industries by up to 10 percent despite the government's statement that the gas distributor could not increase the gas price without its approval, Kontan reported Saturday.

 

PGN director Sutikno said in Jakarta Friday that the company was determined to increase the gas price for industries despite that the government has yet to make a pricing formula as a reference for the company to raise its prices. "There will be a delay but we are sure the director general of oil and gas will agree with our proposal," he added.

 

PGN's Corporate Secretary Widyatmiko Bapang said that PGN's proposed 10 percent increase in the price of gas sold to industries was quite realistic because it was still  lower than the increase in the price of gas from Pertamina which reached as high as 60 percent.

 

"The government should also protect the interest of PGN," he was quoted as saying.

 

Meanwhile, Director General of Oil and Gas of the Ministry of Energy and Mineral Resources Luluk Sumiarso said that based on a pricing formula the gas price may be increased by around 5 percent.

 

According to Luluk, the pricing formula will be issued with a number of conditions including the reliability of the gas supply to customers. (*)