PGN Addresses 60% Surge in Ceramic Industry Gas Prices

JAKARTA — PT Perusahaan Gas Negara Tbk (PGN) has addressed complaints from the ceramic industry regarding a surge in gas prices. The price of gas for ceramic manufacturers has reportedly increased by over 60% in the past six months.

Corporate Secretary Fajriyah Usman stated that global geopolitical dynamics have triggered a rise in international energy prices, particularly liquefied natural gas (LNG), which has also impacted domestic energy costs.

“We understand the concerns of ceramic industry players, as global energy prices have risen over recent months due to geopolitical dynamics, affecting LNG prices,” Usman said on Wednesday, 27 May 2026.

She clarified that pipeline gas prices, including those for customers under the Specific Natural Gas Price (HGBT) scheme, remain governed by government regulations and have not changed.

“It is important to note that this adjustment applies to LNG-based gas supplies,” she said.

Usman explained that the LNG pricing formula follows international energy indicators such as the Indonesian Crude Price (ICP), Japan Crude Cocktail (JCC), and Japan Korea Marker (JKM), which have risen significantly due to global energy market conditions.

Data from the Ministry of Energy and Mineral Resources (ESDM) shows Indonesia’s crude oil price was $64.41 per barrel in January 2026, rising to $68.79 in February, then jumping to $102.26 in March and approximately $117.31 in April.

“This increase has directly influenced the LNG procurement formula,” she added.

Other countries relying on LNG for industrial energy are also experiencing similar price pressures.

“Many countries using LNG are facing the same energy price pressures,” Usman said.