REPUBLIKA.CO.ID, JAKARTA -- The state-owned oil and gas company Pertamina will reduce the price hike for the 12-kg non-subsidized liquefied petroleum gas (LPG) cylinder from Rp3.9 thousand to Rp one thousand per kilogram, following criticism from the government and people.
"After seeking consultation with the officials of the Supreme Audit Agency (BPK), the price for the 12-kg cylinder will be lowered to Rp82 thousand from the previous price of Rp117 thousand. The price change will become effective from January 7," State-owned Enterprises Minister Dahlan Iskan stated here on Monday.
The decision was taken following mounting protests after PT Pertamina hiked the gas price earlier this month, without evaluating its social and economic impact. Meanwhile, PT Pertamina defended its decision to increase the gas price as it would continue to suffer significant losses if it kept selling gas at the rate of Rp8.1 thousand per 12-kg cylinder.
Minister Dahlan remarked that the increased gas price will not significantly reduce Pertamina's losses.
"Prior to the gas price hike, Pertamina suffered a loss of Rp7.7 trillion per year. However, with the current decision to increase the gas price by Rp one thousand per kilogram, the loss will be reduced to Rp6.5 trillion per year," Dahlan added.
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