JAKARTA. State-owned oil and gas firm PT Pertamina increased the price of 12-kilogram liquefied petroleum gas (LPG) canisters as of Wednesday.
The price increase is set at Rp 1,500 per kg, or Rp 18,000 per canister. Given the increase added by other cost components such as transportation costs, the price of 12-kg LPG canisters will retail at Rp 114,300, from Rp 92,800 previously, according to Pertamina marketing director Hanung Budya.
"The increase is effective starting at 12 a.m. Wednesday. This move is expected to help Pertamina reduce its losses in the LPG business," Hanung said at a press briefing on Wednesday.
Losses from its 12-kg LPG business are now estimated at Rp 5.7 trillion, from the previous estimation of Rp 6.1 trillion.
The increase follows a previous hike in January. Pertamina is planning to implement further increases until 2016 in an attempt to cut losses from its 12-kg LPG business.
Unlike for 3-kg LPG canisters, the government does not subsidize 12-kg LPG canisters. However, considering people's purchasing power, Pertamina has sold 12-kg LPG canisters for lower than their economical price and suffered losses over recent years.
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