Pertamina Affirms Melon Gas Prices Will Not Rise

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JAKARTA - Pertamina through PT Pertamina Patra Niaga, Sub Holding Commercial & Trading PT Pertamina (Persero) emphasized that the price increase was only for non-subsidized LPG such as Bright Gas, while for 3 kilograms (kg) subsidized LPG or melon gas there was no price change.

Acting PT Pertamina Patra Niaga Corporate Secretary, SH C&T PT Pertamina (Persero) Irto Ginting explained that the price increase only applies to non-subsidized LPG which is consumed at 7 percent of the total national LPG consumption. This means that there is no increase in the price of subsidized gas 3 kg or melon gas.

"For the 3 kg subsidized LPG, which accounts for more than 93 percent of the total national LPG consumption as of January 2022, there is no change in price," he said in a written statement, Monday, February 28.

"The price of subsidized 3 kg LPG still refers to the Highest Retail Price (HET) set by the local government," he continued. With the adjustment, the current non-subsidized LPG price is around Rp 15,500 per kg.

"It is recorded that the price of Aramco's Contract Price (CPA) reached 775 US dollars per metric ton, an increase of about 21 percent from the average CPA price throughout 2021," he said.

In addition, Irto said that the price increase had taken into account the capacity of the non-subsidized LPG market. In fact, the price is still cheaper than other countries in the ASEAN region.

"This price adjustment has taken into account the conditions and capabilities of the non-subsidized LPG market, besides that this price is still the most competitive compared to various countries in ASEAN," he explained.