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Govt' Mulls Three Kilograms LPG Price Increase  

27 January 2015 17:00 WIB

TEMPO.CO, Jakarta - The Energy and Mineral Resources (ESDM) Ministry is currently reviewing Pertamina's proposal to increase the price for three kilograms LPG canister by Rp 1,000 per kilogram. Pertamina said that the price increase is inevitable as a result of increasing operational and distribution costs.

"The [LPG] price hike is currently being reviewed. Hopefully a decision could be made in February," ESDM Ministry's acting oil and gas director general I Gede Nyoman Wiratmadja said on Tuesday, January 27, 2015.

Nyoman revealed that if the subsidized LPG price is not increased, then the government would have to bear heavy subsidy.

"[The subsidy load] could increase by Rp 2 trillion [around US$166.6 million]," he said, adding that the demand for LPG could reach as much as 5.6 million canisters per year.

ROBBY IRFANY

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