Price Of LPG In 12-Kg Cylinders Hike To Rp7.5 Thousand

Jakarta, Dec 4 (Antara) - State oil and gas company Pertamina has raised the price of liquefied petroleum gas (LPG) in 12-kg cylinders to Rp7.5 thousand from Rp4 thousand in Java as it pursues a policy of shifting the increase in the cost of distribution to consumers. "Since December 1, 2013, Pertamina has shifted the distribution and filling costs of LPG in 12-kg cylinders to consumers. As a result, the price of LPG sold to consumers has increased," Pertamina`s marketing and commercial director, Hanung Budya, said here on Wednesday. The policy does not change the price composition of LPG sold in 12-kg cylinders, but it does increase the price burden on consumers, he added. While the cost of production of LPG in 12-kg cylinders remains unchanged, the cost of distribution has increased to Rp600 per kg from Rp300 per kg, he added. "The increase is Rp300 per kg in the cities, depending on their distance from the filling station. Therefore, the price of LPG in 12-kg cylinders has increased by about Rp4 thousand to Rp7,750," he said. He pointed out that the policy to pass on the increase in the distribution cost to consumers had been implemented outside Java earlier. Despite the new price change, the gas price subsidy remains relatively high at Rp4.1 thousand per LPG cylinder, he noted. As a result, Pertamina will face Rp6 trillion in losses from the sale of LPG in 12-kg cylinders, he added.