ID :
338752
Fri, 08/22/2014 - 14:26
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Pertamina Anticipates Consumers Switching To Subsidized LPG

Jakarta, Aug 22 (Antara) - State oil and gas firm Pertamina has anticipated the possibility of consumers switching to subsidized LPG in 3-kg cylinders after the company raises the price of non-subsidized LPG in 12-kg cylinders. Pertamina had applied a monitoring system capable of detecting the abuse of subsidized LPG as early as possible, including the possibility of consumers switching to non-subsidized LPG due to disparities between the prices of LPG in 3-kg cylinders and 12-kg cylinders, Pertamina deputy president for LPG and gas products Gigih Wahyu Hari Irianto said here on Friday. Through the system called simol3k, Pertamina was able to monitor the movement of LPG in 3-kg cylinders at 3,400 agents and 143,000 depots across Indonesia, he noted. "This system can monitor the distribution of LPG in 3-kg cylinders to up to the village level. If consumption increases significantly, we can anticipate it earlier than usual," he stated. According to Regulation of the Energy and Mineral Resources Minister No. 26/2009, LPG in 3-kg cylinders is only sold to households with a maximum monthly spending of Rp1.5 million and micro businesses with a monthly turnover of Rp50 million. Based on experience, consumers switched to LPG in 3-kg cylinders for only one month after the company raised the price of LPG in 12-kg cylinders, he said. "This time, we believe it will be less than one month because we have familiarized consumers with the plan to raise the price of non-subsidized LPG in 12-kg cylinders," he remarked. The consumption of non-subsidized LPG in 12-kg cylinders currently stands at one million tons per year, while according to the quota in the revised 2014 state budget, the consumption of LPG in 3-kg cylinders is set at 5.013 million tons per year. The government has approved the increase in the price of LPG in 12-kg cylinders and will soon hold a coordination meeting to set the price and date of the increase.

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