CNG Replacement for LPG 'Melon Gas' to Launch Soon, What Will the Price Be?

The government is steadily refining plans to utilise Compressed Natural Gas (CNG) as a replacement for 3kg LPG for household needs. This programme represents one of the government’s efforts to reduce dependence on energy imports while curbing the escalating subsidy burden, which has been rising due to high consumption of subsidised LPG in Indonesia.

Amid these plans, the public is beginning to question the price of CNG once it is officially rolled out on a wide scale.

Regarding pricing, the government has confirmed that the selling price of CNG for households is still under study. However, it is hoped that it will be cheaper than the 3kg LPG currently circulating in the market.

“Pray (that the price) is below that of 3kg LPG, yes. At least the same (price). At least the same,” said the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, in Jakarta on Wednesday, 6 May 2026.

In addition to discussing CNG pricing, the government has assured that the energy subsidy scheme will continue to be provided to the public once the LPG to CNG conversion programme is implemented.

“I assure you that subsidies will still be necessary for the people,” he stated.

According to Bahlil, this subsidy policy aligns with instructions from President Prabowo Subianto, who has urged the government to prioritise the interests of the people, particularly energy subsidy recipients.

Although subsidies will persist, the government estimates that using CNG could reduce the national subsidy burden by around 30%. This is considered feasible because the raw material for CNG comes from domestic resources, thus reducing reliance on imports unlike LPG.

Regarding distribution, Bahlil noted that the CNG delivery system will not differ greatly from the existing LPG distribution.

“It’s only slightly different. This is just replacing one with LPG and the other with CNG. CNG doesn’t drain foreign exchange abroad, whereas LPG does because we don’t have C3 and C4 raw materials (for LPG),” said Bahlil.

Currently, the government is conducting trials of special cylinders for household CNG. This development is necessary because the pressure characteristics of CNG differ significantly from regular LPG.