Minister Bahlil states government will continue subsidies for CNG

Jakarta (ANTARA) - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the government will continue to provide subsidies for the implementation of Compressed Natural Gas (CNG), which is planned to replace the 3kg Liquefied Petroleum Gas (LPG). “I assure you that subsidies will still be necessary for the people,” Bahlil said when met at the Ministry of ESDM office in Jakarta on Wednesday. Bahlil explained that the provision of these subsidies is in line with the directive from President Prabowo Subianto, who instructed Bahlil to prioritise the interests of the people, especially those who need subsidies. Although subsidies will still be used, Bahlil estimates that replacing 3kg LPG with CNG could save up to 30 per cent on subsidies. “The difference is only slight. The replacement is from LPG to CNG. CNG does not drain foreign exchange abroad, whereas LPG does because we do not have C3 and C4 raw materials (for LPG),” Bahlil stated. Currently, the government is not only conducting trials for type 4 cylinders for CNG or cylinders intended for 3kg CNG. In parallel, the government is also reviewing the selling price of 3kg CNG. “Pray that (the price) is below 3kg LPG, yes. At least the same (price). At least the same,” Bahlil said.