JAKARTA (Yosefardi) – The government of Indonesia and state oil and gas company PT Pertamina have agreed to cut the price of subsidized liquefied petroleum gas (LPG) for 12 kilogram cylinder to Rp82,200 per cylinder, from Rp117,708. This new price will be effective on Tuesday morning (Jan 7) at 00.00 am Jakarta time.
Dahlan Iskan, minister of state-owned enterprises (SoE), said Pertamina will have potential loss of Rp6.5 trillion with upcoming price cut for LPG.
As of January 1, 2014, Pertamina increased the price of non-subsidized 12-kg LPG cylinders by 68% to Rp117,708 from previous Rp70,200, but it admitted to remain have a potential loss of around Rp2 trillion per year.
In 2013, the consumption of LPG for 12 kilogram cylinder reached 977,000 tons.