I know some of the people focus a spotlight on and protest the price increase of LPG in 12-kg cylinders."
Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono asked Vice President Boediono to report to him on the result of a cabinet meeting on Saturday that discussed gas price increase.

The President said on his Twitter account that he had asked the Vice President to report to him at Halim Perdanakusma airport when he came back from his working visit to East Java on Sunday.

State-owned oil and gas company Pertamina has announced it has raised the price of liquefied petroleum gas (LPG) by 68 percent effective as of January 1, 2014.

The Presidents statement on Sunday was part of his series of statements on his Twitter account he made to give response to unrest among the public with regard to the increase of the gas price hike.

"Yesterday, I instructed the Vice President to chair a cabinet meeting to find a solution. My directives: it should not create inflation and burden the people. Today, Sunday January 5, 2014, I ask the Vice President to report the result of the meeting at Halim. The result of the meeting should be pro-people," the President said.

The head of state and entourage were scheduled to arrive at Halim Perdanakusumah airport Sunday noon after having a three-day working visit to East Java on January 3-5, 2014.

"I know some of the people focus a spotlight on and protest the price increase of LPG in 12-kg cylinders," he said.

Although Pertamina has the authority to raise the gas price without the need to report, the President is of the view that the government has to interfere because it concerns the interest of the public.

"I know that the State Audit Board (BPK) has notified that Pertamina has suffered a loss of Rp7 trillion, but the solution that has to be taken should not automatically raising the price by 60 percent," the president said.

He said that a high increase would boost commodity and service prices which would eventually put burdens on the underprivileged.

Pertamina has hiked the selling price of non-subsidized 12-kg cylinders of liquefied petroleum gas by about 68 percent, effective January 1, 2014.

Deputy President of Pertaminas Communications Affairs Ali Mundakir reported Wednesday that his company had raised the price in an effort to shore up Pertaminas losses in the 12-kg cylinder gas business, which reached about Rp6 trillion in 2013.

"The new price simultaneously became effective across the country on January 1, 2014. The new price of non-subsidized 12-kg cylinder gas translates to an average increase of Rp3,959 per kg for the consumer," Mundakir added.

With the increase of Rp3,959 per kg, the new price of non-subsidized gas has reached Rp47,508 per 12-kg cylinder gas. Before the hike, the price of a 12-kg cylinder gas was Rp5,850 per kg, or Rp70,200 per 12-kg cylinder, which had been effective since 2009.

Thus, the price of the 12-kg non-subsidized LPG cylinder will become Rp117,708. He pointed out that even though Pertamina had raised the price of LPG, it will still absorb a loss of Rp2,100 per kg.

"This is because the basic production cost of LPG has reached Rp10,785 per kg," he stated.
(Uu.A014/F001)

Editor: Priyambodo RH
Copyright © ANTARA 2014