REPUBLIKA.CO.ID, JAKARTA -- An observer of energy-related affairs of the RiforMiner Institute has urged the government to impose a fixed subsidy on liquefied petroleum gas (LPG) in 3-kilogram cylinders.

"I think it would be better if the government imposes a fixed subsidy on gas in 3-kilogram cylinders, similar to the one imposed on diesel oil," Komaidi Notonegoro, the observer, said here on Monday.

The imposition of a fixed subsidy will enable the government to have a clear idea about the amount of money and gas involved.

However, the government should raise the retail price of gas in 3-kilogram cylinders before it decides its fixed subsidy.

"The concept should be the same as that kept in mind for the diesel oil subsidy---the price of a subsidized gas should be closer to its regular price," he added.

This is to prevent consumers from switching to using gas in 12-kilogram cylinders.

On January 1, the government decided to impose a fixed subsidy of Rp1,000 per liter for diesel oil.

According to Notonegoro, the increase in the price of gas in 3-kilogram cylinders could not be avoided due to the fact that the amount of gas imported is now 60 percent, and it will continue to increase.

The disparity between the price of gas in 3-kilogram canisters and that in 12-kilogram cylinders is declining, in line with the drop in the prices of oil.

In the future, however, it is likely for the price to be raised again, and the disparity could reach amounts between Rp8,000 and Rp10,000 per kilogram.

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