Minister Bahlil Reveals CNG 3 Kg Is Cheaper Than LPG

Energy and Mineral Resources Minister Bahlil Lahadalia has stated that the 3 kg compressed natural gas (CNG) project is projected to be cheaper than LPG 3 kg. According to Bahlil, if the use of CNG can replace a portion of subsidised LPG consumption, the government could potentially save on the energy subsidy budget. “The price is clearly 30% to 40% cheaper than LPG. If it’s 30% to 40%, our subsidy now is around IDR 86-90 trillion. Multiply by an average of, say, 25%, times 30%, that means we could achieve efficiency of IDR 27-30 trillion. This could be used to build other things,” Bahlil said at the Palace on Monday (6/7/2026). He stressed that the entire plan still depends on the results of the third trial phase. The government is currently conducting the third trial for 3 kg CNG cylinders before they are widely marketed. “If the third trial is successful, God willing, we can implement it. Because the pressure in the 3 kg cylinder is around 200 to 250 bar. We have to be careful,” Bahlil said. According to him, the trial is targeted for completion in July 2026. After the evaluation results are in, the government will announce the next steps. “Let’s pray that the sooner, the better,” Bahlil said. Previously, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Laode Sulaeman, explained that the distribution of 3 kg CNG will use the same mechanism as LPG to make it easier to implement in the community. “Where there is a function for agents and sub-distributors, it must be in cooperation with Pertamina. The pattern for CNG is exactly like one of the LPG distribution patterns,” Laode explained some time ago, as quoted on Monday (29/6/2026). Laode explained that the public will not need to purchase the CNG cylinders. The government will implement a gas refill exchange system, while ownership of the cylinders will remain with the provider business entity. “The pattern is that the cylinder is not bought by the public, but is owned by the business entity. So, the public just exchanges it,” he stressed. For the initial implementation phase, the government has decided to import CNG cylinders from China. This step was taken because the technology required to manufacture high-pressure cylinders is not yet mass-produced domestically.