Pertamina may raise LPG prices

Pertamina may raise LPG prices

JAKARTA: PT Pertamina, Indonesia's state-owned oil company, said it plans to boost retail liquefied petroleum gas prices next month and January to cut losses from rising international prices.

The company is losing Rp 820 rupiah a kilogram of LPG at the current selling price of Rp 3,000 rupiah (35 U.S. cents) a kilogram, Achmad Faisal, the company's general manager for domestic gas business, told reporters in Jakarta.

The company loses money on its LPG business because it buys 30 percent at market prices and resells it to consumers at a subsidized price, he said.

"We're still calculating how big the increase is. But it will be done twice, probably next month and in January, to avoid giving our customers too much of a shock," Faisal said. --Bloomberg