Jakarta, CNN Indonesia —
PT Pertamina (Persero) decided to increase the price LPG non subsidy amounting to Rp. 1,600-Rp. 2,600 per kilogram (kg) since last Saturday (25/12). They argued that the increase was done to respond to price spikes at the international level.
“The amount of non-subsidized LPG price adjustment, whose national consumption portion is 7.5 percent, ranges from Rp. 1,600 to Rp. 2,600 per kg. This difference is to support the uniformity of LPG prices in the future and create fairness (fairness) prices between regions,” explained Acting Corporate Secretary Pertamina Patra Niaga Sub Holding Pertamina Commercial & Trading Irto Ginting to CNNIndonesia.com, Monday (27/12).
Irto claimed that the increase in non-subsidized LPG prices was a response to the trend of increasing Contract Price Aramco (CPA) LPG prices throughout this year. He noted that in November 2021 the price reached US$847/metric ton, the highest price since 2014 or an increase of 57 percent since January 2021.
“The last non-subsidized LPG price adjustment was made in 2017. The November 2021 CPA price was recorded 74 percent higher than the price adjustment 4 years ago,” he said.
Even so, Irto ensured that the subsidized 3 kg LPG, which nationally consumed 92.5 percent, did not increase in price.
“(The 3 kg subsidized LPG) did not undergo a price adjustment, still referring to the Highest Retail Price (HET) set by the government,” added Irto.
Despite the price increase, he explained that Pertamina’s LPG price was still competitive, which was around Rp. 11,500/Kg as of November 3. He said the price of LPG in the country is cheaper than Vietnam at around Rp. 23,000/Kg, the Philippines at around Rp. 26 thousand/Kg, and Singapore at around Rp. 31 thousand/Kg.
He did not deny that the price of LPG in Indonesia is still more expensive than Malaysia and Thailand because of subsidies from the governments of the two Indonesian neighbors.
“Pertamina will ensure the stock and distribution of LPG runs optimally and continue education on the use of LPG that is on target,” he concluded.
(well / eight)
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