PGN plans to raise gas prices

State owned distribution gas company PT Perusahaan Gas Negara (PGN) said that it plans to raise gas prices by 10 percent to $5.5 a million British thermal unit in the middle of this year.

The price gain is to help offset the loss caused by the delays in the pipeline projects, PGN?s president director Sutikno said Friday.

?We will wait until the gas flow is as planned before raising prices,? he was quoted as saying by Bloomberg. With the higher price, the company will be able to maintain the targeted increase in profit, Sutikno said, without elaborating.

On Jan. 1 last year, PGN increased prices of the gas sold to manufacturers to $5 a million British thermal unit from $4.5 a million British thermal unit. (*)