REPUBLIKA.CO.ID, JAKARTA -- Effective January 2014, the state-owned oil and gas company, Pertamina, hiked the selling price of the non-subsidized 12-kg cylinder of liquefied petroleum gas (LPG) by about 68 percent, a Pertamina executive stated.

Deputy President of Pertamina's Communications Affairs Ali Mundakir reported here on Wednesday, that his company has raised the price in an effort to curtail Pertamina's losses in the 12-kg gas cylinder business, which reached about Rp6 trillion in 2013.

"The new price will simultaneously become effective across the country from January 1, 2014, 00:00 hours. The new hiked price of non-subsidized 12-kg gas cylinder translates to an average increase of Rp3,959 per kg for the consumer," Mundakir claimed.

He added that the increase at the consumer level will differ based on how far the consumer is located from the LPG distribution station or the supply point.

With the increase of Rp3,959 per kg, the new price of non-subsidized gas has reached Rp47,508 per 12-kg cylinder. Before the hike, the price of a 12-kg gas cylinder was Rp5,850 per kg or Rp70,200 per 12-kg cylinder, which had been effective since 2009.

Thus, the price of the 12-kg non-subsidized LPG cylinder will become Rp117,708. He pointed out that even though Pertamina had raised the price of LPG, it will still suffer a loss of Rp2,100 per kg.

"This is because the basic production cost of LPG has reached Rp10,785 per kg," he stated.

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