Pertamina Lowers the Price of Non-subsidized LPG, at this Price

Illustration of non-subsidized LPG (Photo: between)

JAKARTA - PT Pertamina (Persero) has made adjustments to the price of 5.5 kg and 12 kg non-subsidized Liquefied Petroleum Gas (LPG).

"In the last period, the price trend for CP Aramco has decreased, so Pertamina has also made adjustments in the form of reducing prices for 5.5 kg and 12 kg non-subsidized LPG. For non-subsidized products, in principle, it adjusts market prices," said Vice President Corporate Communication of Pertamina Fadjar Djoko Santoso, Wednesday 5 July.

Previously, as of June 26 2023, Pertamina had made adjustments to the price of household non-subsidized LPG, namely 5.5 kg LPG and 12 kg LPG. For the 5.5 kg Bright Gas product, the refill price has decreased by IDR 4.000 per cylinder. Meanwhile, refilling the 12 kg Bright Gas product also decreased by IDR 9.000 per cylinder to IDR 204,000 per cylinder from the previous IDR 213.000.

Meanwhile, Fadjar explained that the price of subsidized LPG had not changed. As for setting the benchmark price of 3 kg LPG or subsidized LPG, it is the authority of the government, in this case the Ministry of Energy and Mineral Resources (ESDM). This is in accordance with the Decree of the Minister of Energy and Mineral Resources Number 253.K/12/MEM/2020 concerning the Standard Price for Liquefied Petroleum Gas for 3 Kilogram Cylinders.

"So, as a business entity appointed to distribute subsidized 3 kg LPG, Pertamina is ready to carry out Government directives and policies," said Fadjar.

As for setting the Highest Retail Price (HET) of 3 Kg LPG, the local government (pemda) in this case has authority in every Province, Regency, and City. This is also regulated by Regulation of the Minister of Energy and Mineral Resources Number 26 of 2009, concerning the Supply and Distribution of LPG. According to article 24 paragraph (4) in the regulation, it is stated that HET adjusts to regional conditions, people's purchasing power, and reasonable margins.

Pertamina added Fadjar, always disseminating calls for the use of targeted subsidies, especially in this case 3 Kg LPG which is intended for people who are eligible. Pertamina is also conducting trials for the distribution of 3 kg LPG using ID cards to make it more targeted.