REPUBLIKA.CO.ID, JAKARTA - Effective January 1, 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 Pertaminas Communications Affairs Ali Mundakir said on Wednesday, that his company had raised the price in an effort to curtail Pertaminas losses in the 12-kg gas cylinder business, which reached about 6 trillion IDR 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 would differ based on how far the consumer was located from the LPG distribution station or the supply point.

Before the hike, the price of a 12-kg gas cylinder was 5,850 IDR per kg or 70,200 IDR per 12-kg cylinder, which had been effective since 2009. With the increase of 3,959 IDR per kg, the increase will be 47,508 IDR.

Thus, the price of the 12-kg non-subsidized LPG cylinder will become 117,708 IDR. He pointed out that even though Pertamina had raised the price of LPG, it will still suffer a loss of 2,100 IDR per kg.

"This is because the basic production cost of LPG has reached 10,785 IDR per kg," he stated.

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