GOVT OKAYS PERTAMINA'S PLAN TO RAISE LPG PRICE

Jakarta, Aug 15 (ANTARA) - State-owned oil and gas firm PT Pertamina said the government had agreed to its plan to raise the price of liquefied petroleum gas (LPG) in 12-kg containers.

"The government has given the green light for us to adjust the domestic price of LPG in 12-kg cylinders," Pertamina spokesman Basuki Trikora Putra said.

But Pertamina had decided not to increase the LPG price until after the post-fasting month or Lebaran festivities. The fasting month will start on August 22, 2009 and last 30 days.

"Based on our considerations not to put a burden on consumers, we decided not to raise the price in the runup to the fasting month but to wait until after the lebaran festivities," Putra said
Pertamina had submitted a proposal to the government to increase the price of LPG, particularly that in 12-kg cylinders in an effort to offset losses it had suffered in its LPG sales so far.

The state-owned firm proposed a price increase of Rp100 per kg of the gas or Rp1,200 per cylinder. Last year, the company also proposed a price increase of Rp500 per kg of LPG in 12-kg cylinders.

But the proposal last year was rejected by the government on the ground that it would put a burden on consumers.