Pertamina Adjusts Non-subsidized LPG Prices Periodically

Jakarta, July 4, 2023 - PT Pertamina (Persero), a State-Owned Enterprise (SOE) in the oil and gas sector, is committed to providing energy for Indonesian people, including the Liquefied Petroleum Gas (LPG) supply. In determining the non-public service obligation (NPSO) or non-subsidized LPG price, Pertamina periodically evaluates market prices based on international LPG prices.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, stated that the Non-subsidized LPG prices’ determination falls within the enterprise’s authority regarding the trends and mechanisms of the Contract Price Aramco (CP Aramco).

"In recent times, the CP Aramco prices have experienced a decrease, prompting Pertamina to adjust the non-subsidized LPG prices in the form of a reduction for the 5.5 kg and 12 kg categories. For non-subsidized products, the principle is to adjust to market prices," said Fadjar.

Previously, as of June 26, 2023, Pertamina had adjusted the non-subsidized household LPG prices, namely the 5.5 kg and 12 kg categories. For the 5.5 kg Bright Gas product, the refill price decreased by IDR 4,000 per cylinder. Meanwhile, the refill price for the 12 kg Bright Gas product also decreased by IDR 9,000 per cylinder, now priced at IDR 204,000 per cylinder compared to the previous IDR 213,000.

Furthermore, Fadjar explained that the Subsidized LPG price remains unchanged. As it is the government’s authority to determine the reference price for the 3 kg subsidized LPG, specifically the Ministry of Energy and Mineral Resources (EMR). It is in line with Ministerial Decree No. 253.K/12/MEM/2020 regarding the Reference Price for 3 Kilogram Liquefied Petroleum Gas Cylinders.

Therefore, as the designated entity for distributing the Subsidized 3 kg LPG, Pertamina is ready to implement the government's directives and policies.

The regulation of the Maximum Retail Price (HET) of 3 kg LPG is within the jurisdiction of the local governments in each province, district, and city. It is also regulated by Ministerial Regulation No. 26 of 2009 on LPG Supply and Distribution. Article 24, paragraph (4) of the regulation states that the HET should adjust to regional conditions, purchasing power of the community, and reasonable margins.

Fadjar added that Pertamina consistently promotes the appropriate targeting of subsidies, especially in the 3 kg LPG case, which is intended for eligible communities. Pertamina also conducts trials for the 3 kg LPG distribution using national identification cards (KTP) to ensure better targeting.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**