LPG Price Hike to Trigger Rise in Inflation Rate  

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  • TEMPO.CO, Jakarta - The head of the Central Statistics Agency, Suryamin, predicts the new price for 12-kilogram canisters of LPG, which took effect on September 10, 2014, will cause this month's inflation rate to rise. 

    "Although the price is only a little bit higher, the adjustment will have an impact on this month's inflation rate," said Suryamin in Mangga Besar, Jakarta on Thursday. 

    However, Suryamin stopped short of saying an exact figure. 

    "What's clear is that the price adjustment will cause prices of other goods to increase, just the way that prices would rise after the price of subsidized fuel is increased," explained Suryamin. 

    According to Suryamin, there are direct and indirect impacts on customers from the price increase. 

    "Consumers who will experience direct impacts are those using the 12 kg LPG canisters for cooking, while those indirectly affected are the ones using the 12 kg canisters for their businesses," said Suryamin. 

    Previously, the Deputy Minister for Energy and Mineral Resources, Susilo Siswoutomo, said the price for non-subsidized 12 kg LPG canisters will be increased in phases until it reaches economic equilibrium. 

    As per 00.00 a.m., September 10, 2014, the state oil and gas company (Pertamina) increased the price of 12 kg LPG canisters by Rp1,500 per kg from Rp6,069 to Rp7,569 per kg in an attempt to stave off losses. 

    According to him, the government has given Pertamina the green light to increase the price by Rp1,500 every six months until July 1, 2016, where it is hoped that an economical price would be reached. 

    The next adjustment is slated to come into affect on January 1, 2015.