REPUBLIKA.CO.ID, JAKARTA – The Deputy Minister of Energy and Mineral Resources, Widjajono Partowadigdo, suggests the government to subsidize 1,000 IDR to Compressed Natural Gas (CNG). “The price is now 4,500 IDR. I suggest it to be sold at 3,500 IDR,” he said on Wednesday.
It will be a temporary solution to promote fuel conversion to CNG. “When the fuel price has not increased yet but CNG sold at 4,100 then gas is hard to compete against fuel,” he explained.
He admitted that once the fuel price increased, then the proposal to increase CNG price would be discussed. He said subsidy could be taken from the budget for energy approved by the House of 225 trillion IDR. Subsidy is also applied for converter kit making.
Meanwhile, the member of Commission VII at the House, Satya W Yudha, said the proposal was hardly approved by the House this year. The 225 trillion IDR budget for energy has become law and it does not cite the rule on CNG subsidy.
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