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Pertamina Suffers Trillions from Selling LPG

9 September 2014 20:26 WIB

TEMPO.CO, Jakarta – State-run oil and gas company Pertamina has decided to increase the 12-kg LPG canister price after it lost Rp2.5 trillion (US$208.3 million) from selling the LPG at low price, Pertamina spokesperson Adiatman Sardjioto told journalists on Tuesday, September 9, 2014.

According to Adiatma, Pertamina has subsidized the LPG price at Rp6,000 per kilogram from its present retail price of Rp11,500 per kilogram.

Pertamina pitched its plans to increase the LPG price by Rp1,000 in January and July this year. For each Rp1,000 price increase, Pertamina could cut its losses by Rp1 trillion.

In 2015, Pertamina will increase the 12-kg LPG canister price in January and July by Rp1,500, respectively. If the plan was to be realized, Pertamina would able to reduce its losses by Rp3 trillion next year. The planned price hike will be repeated in 2016 until the price reaches its economic price.

AYU PRIMA SANDI


Oil and gas


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