LPG price raised, others stable<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State-owned oil and gas company Pertamina has raised the price
\nof liquefied petroleum gas (LPG), while leaving the prices of
\nother fuels unchanged.<\/p>\n
Starting Friday, Pertamina will sell LPG for Rp 2,850 (33 US
\ncents) per kilogram, up Rp 150, or 5.5 percent, from the previous
\nprice, in areas other than Batam.<\/p>\n
For Batam, Pertamina will sell the product for Rp 3,500 per
\nkilogram, up Rp 800, or 29.6 percent, from the previous price,
\nPertamina's general manager for LPG and special products, Iqbal
\nHasan, said in a press conference on Thursday.<\/p>\n
Pertamina deliberately sets higher prices for Batam to make
\nthem similar to the prices in Singapore, thus discouraging the
\nsmuggling of fuel to the city state.<\/p>\n
LPG is widely used in urban households for cooking as an
\nalternative to kerosene. The fuel is usually sold in 12-kilogram
\ntanks, which based on the new pricing scheme will cost Rp 34,200,
\ncompared to Rp 32,400 previously.<\/p>\n
Iqbal said Pertamina was forced to raise the price in a bid to
\ncut its losses, saying that the firm had been losing money in the
\nLPG business for the past several years.<\/p>\n
Last year, the firm booked a loss of Rp 565 billion from LPG
\ntrading, and in the first semester of the year the losses reached
\nRp 102 billion.<\/p>\n
"As the result of the new pricing scheme, we hope to reach a
\nbreakeven point in LPG trading in the second semester of the
\nyear," he said.<\/p>\n
Citing the same reason, Pertamina raised LPG prices twice last
\nyear, in July and December, a move which drew public protests.<\/p>\n
Iqbal also said that in order to promote the wider use of LPG
\nby the public, Pertamina would cut the price of LPG tanks by 35
\npercent to Rp 135,000 per unit from Rp 250,000 per unit
\ncurrently.<\/p>\n
On the same occasion, Pertamina also announced that the prices
\nof oil-based fuels would remain unchanged in August.<\/p>\n
Thus, the retail price for Premium gasoline stays at Rp 1,810
\nper liter, while the retail prices of gasoline, automotive diesel
\noil, industrial diesel and fuel oil remain at Rp 1,800, Rp 1,650,
\nRp 1,650 and Rp 1,560 per liter respectively.<\/p>\n
Pertamina is authorized by the government to raise or cut oil-
\nbased fuel prices every month in line with international prices.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lpg-price-raised-others-stable-1447893297",
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