RI to import 5.5m tons LPG this year

The Jakarta Post , Jakarta | Mon, 05/15/2006 12:29 PM | Business

Indonesia may import around 5.5 million metric tons of liquefied petroleum gas (LPG) this year, as the government tries to reduce kerosene consumption by promoting the use of alternative fuel for household uses.

State-owned oil and gas company PT Pertamina can only supply around one million metric tons of LPG out of an estimated total demand of 6.5 million metric tons this year, Energy and Mineral Resources Minister Purnomo Yusgiantoro said.

""We will also import more LPG in coming years to accelerate our plan to reduce the consumption of subsidized kerosene, which has strained the state budget,"" said Purnomo after a recent meeting with Vice President Jusuf Kalla.

Southeast Asia's largest economy is promoting the use of LPG among households and food vendors. The government estimates these users will account for half of the 11 million kiloliters of kerosene consumption this year.

According to Purnomo, the government could save up to Rp 21 trillion (US$2.41 billion) annually if it could switch most of the kerosene users to LPG.

The government has allocated some Rp 54.3 trillion to subsidize fuel sold to individual consumers this year, including kerosene, premium gasoline and diesel.

The subsidy is intended to cover a total of 41.5 million kiloliters of fuel products.

The government will focus its LPG campaign on Jakarta and Java this year, because these areas have the necessary infrastructure to support the program. They also account for 63 percent of the nation's kerosene consumption.

Pertamina along with the government will cooperate in providing cheaper gas tubes and stoves, as well as making LPG refueling stations available. (JP/Rendi Akhmad Witular)

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