Pertamina awaits govt approval for LPG price

JAKARTA. State-owned oil and gas company PT Pertamina spokesman Hanung Budya Yukyanta said that his company had yet to increase the price of non-subsidized 12-kilogram canisters of liquefied petroleum gas (LPG) because it was waiting for the government’s approval.

Pertamina previously announced it planned to increase the price of the 12-kilogram LPG canisters from Rp 1,000 (8.56 US cents) to Rp 6,944 per kilogram by Aug. 15 in a bid to prevent potential losses. However, the government has yet to approve the plan.

“We are still awaiting the government’s decision,” he said on Saturday, as quoted by Antara news agency.

He said that Pertamina would follow the government’s instructions because it had received an official letter from the Coordinating Economic Ministry instructing the state-owned company to wait for a president-led ministerial meeting to take place, during which the price of non-subsidized LPG would be discussed.

Moreover, Energy and Mineral Resources Minister Jero Wacik previously said that Pertamina should consult with the House of Representatives before increasing the price of non-subsidized LPG because such an increase would have a huge impact on consumers. (alz)