"The price is too low, and we have to bear severe losses,"Jakarta (ANTARA NEws) - State-owned oil and gas firm, PT Pertamina, has urged the government to increase the price of 12 kilogram (kg) LPG cylinders by Rp1,500 each so that it is in line with the market price.
"Pertamina is keen on setting a competitive selling price, which is in accordance with the market price," said Hanung Budya, Marketing and Commercial Director of PT Pertamina, on Friday.
He also said the firm has suffered a loss of about Rp4.7 trillion by selling 12 kg LPG cylinders at a low price. "The price is too low, and we have to bear severe losses," he stated.
"For consumers who cannot afford 12 kg LPG cylinders, Pertamina will provide 3 kg LPG cylinders instead," he said.
Meanwhile, Ali Mundakir, vice president of corporate communications at PT Pertamina, said the state-owned firm does not require any permission to raise the price of LPG cylinders.
"However, we believe that an increase in the price of LPG cylinders will create social and economic impact on the society," he stated.
"Once we increase the price of 12 kg LPG cylinders, people who cannot afford 12 kg LPG cylinders can use 3 kg LPG cylinders instead," he added.
Mundakir added that Pertamina had submitted two proposals to the government with regard to an increase in the price of LPG cylinders, but the government had not approved the proposals.
(U.Y012/INE/KR-BSR/B003)
Editor: Priyambodo RH
Copyright © ANTARA 2012
