Consumption Of LPG Gas Cylinders Until April 2024 Reaches 2.68 Million MT

JAKARTA - Plt. The Director General of Oil and Gas (Migas) of the Ministry of Energy and Mineral Resources Dadan Kusdiana reported that the realization of 3 kg LPG consumption throughout January-April 2024 was recorded at 2.68 million metric tons (MT).

This number has reached 33.38 percent of the quota set for the 2024 FY of 8.03 million MT.

"From the time side to April 2024, one-third of it is from a year, which is 33.38 percent of the quota," said Dadan, quoted on Thursday, May 30.

Dadan said, the projected consumption of 3 kg LPG by the end of this year will reach 8.12 million MT or more than stipulated in the APBN.

"Our outlook is 8.12 million MT, slightly more than has been determined," continued Dadan.

Dadan revealed, in fact, the trend of the realization of 3 kg LPG cylinders continues to increase from 2016 to 2022 by 4.5 percent per year and in 2022 to 2023 it will increase by 3.2 percent.

"The decline in presentations of an increase of 1.3 percent was influenced by the results of phase I transformation and increased supervision so that the 2023 overqualification was successfully suppressed and we in 2024 were doing this," explained Dadan.

Taking into account the increase in the volume of LPG distribution by 3 kg from July to December 2022 to July to December 2023, as well as a 3 kg LPG volume outlook until the end of 2024, the Directorate General of Oil and Gas projects the need for 3 kg LPG for next year to reach 8.17 million MT.

Dadan also revealed that his party had ratified the Directorate General of Budget at the Ministry of Finance regarding the projection of LPG needs by 2025.

"Through a letter from the Director General of Oil and Gas to the Director General of Budget dated February 16, 2024, it is projected that the 3 kg LPG needs for 2025 are 8.17 million MT," continued Dadan.

To ensure that subsidies can be more targeted, Dadan said that in 2025 the 3 kg LPG subsidy will undergo a subsidy transformation on target based on beneficiaries. Later, people who have the right to consume 3 kg LPG are those who have been recorded by name and by address in accordance with applicable regulations.

"Transformation is carried out in stages by taking into account the readiness of data, infrastructure, and economic and social conditions of the community," concluded Dadan.