Wacik signs letter to revise gas price
Tuesday, September 4 2012 - 10:49 PM WIB
Energy and Mineral Resources Minister Jero Wacik signed on August 30 this year a letter to revise the price of gas from ConocoPhillips and PT Pertamina EP to state gas distributor PT Perusahaan Gas Negara (PGN) and from PGN to state utility PT Perusahaan Listrik Negara (PLN) and to other industries.
The ministry stated in a press statement on Tuesday that the price increase would be made in two stages, namely on September 1 this year, and then on April 1 next year. In the upstream since September 1 this year, the gas price will be raised by 35 percent, and since April 1 next year the gas price will be raised again by 15 percent.
The energy and mineral resources ministry has also set a scheme of sharing the price difference between the new upstream price and the new downstream price after the price increase made effective. The government decided the scheme of sharing the price burden, after industries protested PGN?s decision to raise its gas prices by 55 percent from US$6,6 to US$10,2 per mmbtu since May this year.
PGN made the decision after the production sharing contractors (PSC) increased their gas prices then. The increase was made effective retroactively starting April. However, following the protests by industries, the government decided to revise the price increase from 55 percent announced by PGN down to 50 percent, to be implemented in two stages. PGN has therefore asked the government to also revise the gas price in the upstream.
Editing by Benget Besalicto Tnb.