Pekanbaru, Riau, Sept 11 (Antarariau.com) - The stock of subsidized liquefied petroleum gas (LPG) in 3-kilogram cylinders dwindled Thursday, after state oil and gas firm Pertamina raised the price of gas in 12-kilogram cylinders Wednesday.
"Many consumers have switched to subsidized LPG in 3-kilogram canisters after the price of the 12-kilogram canisters was raised yesterday," trader Dayat (31) said here Thursday.
He faced problems getting subsidized gas so his shops no longer sold gas in 3-kilogram cylinders, he said.
"I have asked a number distributors but the stock is exhausted. Stocks might come again in a few days after the price of the non-subsidized gas is increased.
Pertamina decided to increase the LPG price following a rise in international gas prices, Senior Supervisor for External Relations of PT Pertamina Marketing Operation Region I, Fitri Erika said in a press release.
Pertamina"s Commercial and Marketing Director Hanung Budya told a press conference in Jakarta Wednesday that Pertamina had raised the price of 12-kilogram LPG cylinders in an effort to offset losses suffered by the company in the LPG business.
"Beginning 00:00 hours local time Wednesday, the price of a 12-kilogram LPG cylinder rises by Rp1,500 per kg or Rp18 thousand per cylinder," he said.
At the consumer level the price increase ranged between Rp21 thousand and Rp22 thousand per 12-kilogram cylinder because it should bear additional transportation cost and the retailer"s margin, he explained.
Before the price increase, a 12-kilogram LPG cylinder was sold at Rp100 thousand. With the price increase, it will be sold to consumers at Rp120 thousand.
"The price hike aims to reduce the losses incurred in that category during 2014, which amounts to Rp452 billion," Hanung explained.
Thus, the loss, which was previously projected at Rp6.1 trillion, would be Rp5.7 trillion for 907 thousand tons of LPG consumption.
However, the loss is still higher than the company"s 2014 budget projection at Rp5.4 trillion, keeping in mind Aramco"s contract price of US$833 per ton at an exchange rate of Rp10.5 thousand per US dollar.
Based on the roadmap delivered by Pertamina through a letter dated January 15, 2014, to the Minister of Energy and Mineral Resources and Minister of State-owned Enterprises, the price hike of the 12-kilogram non-subsidized LPG cylinder will be carried out in stages.
As of July 1, 2014, Pertamina planned to increase the price of the 12-kilogram LPG cylinder category by Rp1 thousand per kilogram.
There will be a hike in the price by Rp1.5 thousand per kilogram from January 1, 2015, July 1, 2015, January 1, 2016 and July 1, 2016.
After July 1, 2016, the price of LPG is expected to reach its economies of scale at Rp11,944 per kilogram or Rp180 thousand per 12 kilogram per cylinder.
Gas Stock in 3-Kilogram Cylinders Running Short in Pekanbaru
