YLKI outraged by Pertamina's decision to hike LPG price

YLKI outraged by Pertamina's decision to hike LPG price

The Indonesian Consumers Foundation (YLKI) blasted state oil
and gas company Pertamina on Saturday for increasing the price of
liquefied petroleum gas (LPG), saying they had increased the
price unlawfully for the second time.

"By increasing the price (of LPG), Pertamina has just repeated
its unlawful act of November 2000 when it increased the price of
LPG by 40 percent," Muhammad Ihsan, coordinator of Kapak LPG of
YLKI told The Jakarta Post.

Pertamina raised the price of LPG by 15 percent from Rp 2,100
to Rp 2,400 per kilogram last Saturday.

Ihsan criticized Pertamina's move to hike the price without
prior information and for arrogantly ignoring the rights of the
consumers.

"The action also belittled the legal proceeding which is still
underway," said Ihsan.

The Central Jakarta District Court ruled earlier last year in
favor of a class action filed by Kapak LPG against Pertamina for
arbitrarily raising the price of liquefied petroleum gas (LPG) in
November, 2000.

The court ordered Pertamina to revoke last November's decision
to raise LPG prices by 40 percent from Rp 1,500 (15 US cents) to
Rp 2,100 per kilogram. Pertamina was also required to compensate
class members and other consumers who could prove they were LPG
consumers in Greater Jakarta.

However, the court's decision will not be executed immediately
as Pertamina is filing for an appeal.

Ihsan revealed that YLKI planned to enclose the latest move of
Pertamina in the documents lodged with the Jakarta High Court to
counter Pertamina's appeal.

"We hope consumers become more critical and ask for a receipt
from the LPG traders upon purchasing LPG, then send the receipts
to YLKI," Ihsan said, adding that the receipts (which indicate
the new price set by Pertamina) could be used as formal evidence
in court.

According to YLKI data, there are about 200,000 LPG consumers
in Greater Jakarta.

Meanwhile, an LPG vendor in Mampang, South Jakarta, Alim
revealed that two months before the increase there had been a
shortage in LPG supplies in Jakarta.

"Pertamina only allowed us (the LPG agents) to take as much as
40 percent of the amount we used to take," Alim said. Her shop
used to sell 800 LPG tanks per day.

Alim revealed that the supplies returned to normal two weeks
ago, "But there have been rumors that Pertamina will increase the
price of LPG."

Pertamina spokesperson Ridwan Nyak Baik argued that there was
no clause in the court's verdict that prohibited Pertamina from
raising the price.

"So, we are not breaking the law as we are appealing against
the ruling, " Ridwan told The Post.

Ridwan said the increase was aimed at decreasing the losses in
LPG sales from Rp 900 billion last year to Rp 700 billion this
year.