Pertamina was currently suffering losses from the sales of non-subsidized LPG in 12 kg canisters, 50 kg canisters and bulk, M Harun said on Thursday.
"This year alone, we predict the losses will reach Rp4.7 trillion," he said.
He said after the price of LPG in 50-kg canisters had been raised the company planned to raise the price of LPG in 12-kg canisters.
"With the price hike, we hope the losses will reach less than Rp2 trillion at the end of this year," he said.
The State Enterprises Ministry had approved Pertamina`s plan to raise the prices of LPG in 12-kg and 50-kg canisters.
The loss forecast of Rp4.7 trillion is more than 100 percent higher than Rp2.3 trillion set in the company`s business plan 2011.
The losses are the result of rising LPG prices in the world market following global oil price hike.
The losses mean that Pertamina provides subsidy to consumers.
In the January-March 2011 period, Pertamina suffered Rp1 trillion in losses from the sales of non-subsidized LPG which reached 290,000 metric tons.
The sale volume is higher than the target of 230,000 metric tons set in the company`s business plan for the same period.
According to Pertamina`s business plan 2011, the company has projected LPG sales to reach 4.452 million tons consisting of 3.552 million tons of subsidized LPG and 900 thousand tons of non-subsidized LPG.
Currently, Pertamina sells every kg of LPG in 12-kg canisters for Rp5,850 and in 50-kg canister for Rp7,355. Meanwhile, the economic price of LPG reaches more than Rp9,000 a kg.
Pertamina last raised the price of LPG in 12-kg canisters to Rp5,950 from Rp5,850 a kg on February 6, 2010.
(T.K007/S012/HAJM/H-YH)
Editor: Priyambodo RH
Copyright © ANTARA 2011
