Pertamina raises LPG price once again<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
Defying public concern, state oil and gas company Pertamina
\nraised again the price of liquefied petroleum gas (LPG) to Rp
\n32,400 (US$3.64) per tank from Rp 28,800 per tank (each tank
\nholds 12 kilograms of LPG).<\/p>\n
The company said that the new price would be effective as of
\nSaturday.<\/p>\n
It was the second increase this year, after Pertamina raised
\nthe price of LPG last July from Rp 25,200 per tank to Rp 28,800
\nper tank.<\/p>\n
Pertamina, which has a monopoly over Indonesia's LPG market,
\nsaid on Friday that the price hike was aimed at reducing
\nPertamina's losses in the LPG business here.<\/p>\n
It pointed out that the company had been selling the commodity
\nat a loss for quite some time because the government had already
\nrevoked its subsidy.<\/p>\n
\"The commercial price stands at Rp 3,000 per kilogram (or Rp
\n36,000 per tank), but we have been selling it at below cost so
\nfar,\" said Iqbal Hasan, Pertamina's general manager for LPG and
\nspecial products at a press conference here.<\/p>\n
He said the price hike could reduce the company's losses,
\nwhich are estimated to stand at Rp 700 billion this year.<\/p>\n
The new price applies for LPG sold in a 60 kilometer radius
\nfrom the nearest Pertamina LPG station.<\/p>\n
Transportation fees would be imposed for customers requesting
\nLPG outside the 60 km radius.<\/p>\n
The price hike applies for LPG used by households, while for
\nthe transportation sector, Pertamina failed to spell out whether
\nor not there would be a price hike.<\/p>\n
For the transportation sector, the price currently stands at
\nRp 1,600 per liter.<\/p>\n
Although the public would certainly bear the burden of the
\nprice hike, Iqbal defended the policy saying that it was a normal
\nbusiness decision and that such decisions were common in other
\ncountries.<\/p>\n
He said that other countries like Thailand, Malaysia, and
\nVietnam had imposed an even higher price for LPG sold to the
\npublic.<\/p>\n
In the three countries, the price of LPG was Rp 4,000, Rp
\n3,600 and Rp 5,300 per kg respectively, well above the Indonesian
\nprice.<\/p>\n
In a bid to appease the public, Pertamina said the company
\nwould compensate the public for the price hike with some
\nadditional services.<\/p>\n
These included efforts to improve the quality of the LPG tanks
\nproduced by the company.<\/p>\n
The Indonesian Consumers Foundation (YLKI) had strongly
\nprotested the previous price hike. It had even filed a class
\naction lawsuit last July against Pertamina.<\/p>\n
Although the court has yet to issue its final ruling on the
\ncase, Pertamina moved ahead with the second price hike.<\/p>\n
LPG is widely used by middle to upper class households in
\nmajor cities. The amount of LPG sold in Indonesia reaches one
\nmillion metric tons per year. In Jakarta alone, there are some
\n200,000 households using LPG for cooking.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-raises-lpg-price-once-again-1447893297",
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