REPUBLIKA.CO.ID, JAKARTA -- House Speaker Marzuki Alie has expressed regret over state-owned oil and gas company Pertamina's step in increasing liquefied petroleum gas (LPG) price without prior consultation with President Susilo Bambang Yudhoyono.
Marzuki in a press statement on Sunday said that the increase of non-subsidized gas in 12-kg cylinders from Rp5,850 per kg to Rp9,809 per kg or from 70,200 to Rp117,708 per cylinder burdened the people.
He said that Pertamina should in advance report its plan to raise the gas price to the President who gave it the mandate and monopoly right.
"I regret very much Pertamina's decision to directly hike the price of LPG in 12-kg cylinders without reporting it to the President," Marzuki Alie remarked.
He said that Pertamina who was given the monopoly and must have the responsibility to the people, should not hike the price at will only because of the market price or the US dollar value increased now.
"It is very nice of it if Pertamina gets the monopoly but it could decide the price based on the market mechanism. If it is willing to use the market price, the monopoly right should not be given to Pertamina. Pertamina belongs to the state so that it has public responsibility," the House Speaker said.
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 Pertamina's Communications Affairs Ali Mundakir reported Wednesday that his company had raised the price in an effort to shore up Pertamina's 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 increase 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.
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