Pertamina Is Yet To Set New Price Of LPG

Jakarta, Sept 9 (Antara) - State-owned energy company PT Pertamina is yet to set a new price for the subsidized liquefied petroleum gas (LPG) in 12-kilogram canisters. Pertamina is still discussing the right time to raise the price, Vice President of LPG and Gas Products of Pertamina Gigih Wahyu Hari Irianto said here on Tuesday. Gigih Wahyu said Pertamina will follow the guidance given by the government, adding the government wanted Pertamina to coordinate and discuss the price and the time. It was decided at a coordinating meeting headed by the chief economics minister that the government entrusted Pertamina to decide on the price and time to announce the increase in the LPG price. The government, however told Pertamina to take into account the purchasing power of the people before announcing the price hike. Currently, the country`s consumption of subsidized 12-kg LPG is around 1 million tons a year. In a letter on August 6, 2014, Pertamina proposed an increase of Rp1,500 per kg or Rp18,000 per 12kg of LPG in canister. However, the plan for the price hike was postponed. The price hike was proposed to reduce losses in LPG business of Pertamina. Without an increase in price and subsidy from the government, Pertamina would suffer a loss of almost Rp6 trillion in 12-kg LPG business in 2014.