A monopoly right cannot be exercised with a corporate action that depends on profit and loss."
Jakarta, Jan 6 (Antara) - The House of Representatives (DPR) Chairman Marzuki Ali has stated that PT Pertamina should have consulted the related DPRs commission prior to raising price of the 12-kg cylinder of liquefied petroleum gas (LPG).

"Pertamina, as a state-owned company, has the monopoly right to supply LPG to people. That means the head of Pertamina has to report to the government and the law makers in DPR if they want to raise LPG price," Marzuki stated here on Monday.

According to Marzuki, the monopoly right to supply LPG owned by Pertamina was a constitutional command, and therefore the price has to be controlled by the government; to fix the rate that best suits peoples buying capacity.

"A monopoly right cannot be exercised with a corporate action that depends on profit and loss," he noted.

"If Pertamina follows the market mechanism with its profit and loss orientation, then the monopoly rights should not be given to them," Marzuki added.

Apparently, Pertamina had announced the price hike without informing the DPR and the government. Hence, Marzuki stated that the LPG price hike can be cancelled by the government.

"The monopoly right owned by Pertamina is a command, and the government as the taskmaster is authorized to cancel it," Marzuki explained.

Earlier, the state-owned oil and gas company, PT Pertamina, began raising the selling price of non-subsidized 12-kg cylinders of LPG by about 68 percent on January 1.

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

"The new price will simultaneously become effective across the country beginning January 1. The new price of non-subsidized gas in 12-kg cylinders translates to an average increase of Rp3,959 per kg for the consumer," Mundakir noted.

He added that the increase at the consumer level will differ based on how far the consumer is located from the LPG distribution station or the supply point.
(Uu.A060/INE/KR-BSR/A014)

Editor: Priyambodo RH
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