PGN yet to ask for approval over price rise: Evita
Thursday, May 31 2012 - 02:43 AM WIB
Director General of Oil and Gas at the Energy and Mineral Resources Ministry Evita Legowo said that state owned gas distributor PT PGN has yet to ask for approval over its recent move to increase the price of gas it sells to customers.
?We are inviting PGN to discuss the issue,? Evita told petromindo.com. She added that the price increase was legally flawed as long as there is no official approval from the government, be it the Ministry or the downstream regulator BPH Migas.
Evita?s remarks came amid growing protests over PGN?s move of raising its selling price by around 50 percent, effective May 1, for the so-called SBU 1 zone, which covers western Java and southern Sumatra. PGN took the measure after signing agreements on May 8 to raise its purchasing prices for gas from its biggest suppliers, ConocoPhillips and Pertamina.
Some industry consumers said the price increase was too much, while PLN has announced its rejection of the new price, calling for the government to intervene to determine the price. The Commission for Business Competition Supervision (KPPU) has also said that the state firm?s move breached the existing law.
Meanwhile, Andy Noorsaman Sommeng, BPH Migas Chairman, told petromindo.com that he has yet to receive the reports over the price increase.
Editing by Dadan Wijaksana