Pertamina Hikes Price of LPG in 12-kg Cylinders

Medan, N. Sumatra (Antara) - State oil and gas company Pertamina has revised the price of non-subsidized liquefied petroleum gas (LPG) in 12-kg cylinders following a consultation meeting between the government and the State Audit Board (BPK). At the meeting, a decision was taken to raise the price of LPG in 12-kg cylinders by Rp1 thousand per kg, a spokesperson of Pertamina's marketing operation region I, Fitri Erika, said here on Monday. Under the agreement, the price of LPG in 12-kg cylinders was increased by an average of Rp14 thousand per cylinder to between Rp89 thousand and Rp120,100 at the agent level depending on the location, she added. The new price of LPG in 12-kg cylinders will come into effect from midnight tonight (January 7), she pointed out. At the meeting, the government and the BPK reiterated Pertamina's authority to set the price of non-subsidized LPG in 12-kg cylinders, she said. Accordingly, Pertamina has proposed a revision of its business plan for 2014 to the government, she added. The revised business plan estimates the loss from the sales of LPG in 12-kg cylinders at US$0.51 billion (around Rp5.4 trillion), assuming an exchange rate of Rp10,500 per dollar. Given the revision, Pertamina's profit growth is expected to fall to 5.65 percent from 13.17 percent. Pertamina will report the revised price of LPG in 12-kg cylinders to the energy and mineral resources minister, according to the minister's regulation number 26 of 2009 on LPG distribution. (*)