Non-subsidized LPG Gas Prices Rise, Observer: 3Kg LPG Will Be Hunted

Illustration (Photo: Doc. Antara)

JAKARTA - Director of the Center of Economic and Law Studies, Bhima Yudhistira, assesses that there will be a migration of middle-class people who previously used non-subsidized LPG to switch to 3 kilograms (Kg) LPG gas or melon gas. This means that melon gas will be hunted by the public as a result of the price increase. Therefore, the government must take precautions.

As is known, PT Pertamina Patra Niaga has officially raised the price of non-subsidized LPG by IDR 15,500 per kg. The increase is a gradual increase that has been carried out by Pertamina since the end of December 2021.

"What needs to be anticipated is that the middle class, who usually enjoys non-subsidized LPG, may switch to 3 kg LPG or subsidized LPG because the price gap or the difference is getting bigger", he said when contacted by VOI, Monday, February 28.

Furthermore, Bhima believes that the migration of the use of non-subsidized LPG to subsidized LPG will definitely occur.

"Well, this is while the LPG subsidy for melon gas is being carried out openly, so this must be anticipated", he said.

According to Bhima, if the number of users of subsidized LPG increases, the subsidy spending will also increase. Therefore, Bhima stressed that the distribution control must be tightened.

"This must be monitored by supervision in the regions, yes. So this migration will definitely happen because the difference is getting farther", he said.

In addition, Bhima also admitted that he was worried that the poor and MSME actors who really needed it would find it difficult to get 3 kg LPG gas.

"And this will actually make it difficult for MSME business actors or the poor who are truly entitled to 3 kg LPG", he said.