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Gas canisters for the needy
It would be an irony if the government insisted on raising the price of a 3-kilogram gas canister after Idul Fitri
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t would be an irony if the government insisted on raising the price of a 3-kilogram gas canister after Idul Fitri. It would be reckless and insensitive if the reason to increase the gas price was merely to minimize the price disparity between subsidized and nonsubsidized gas.
Here, the government’s sense of crises is questionable. Does the government not feel a sense of responsibilty — to issue such an unfriendly policy while many people throughout the country are suffering due to natural disasters and the poor are facing basic needs price hikes before the upcoming Idul Fitri celebration. News that the government will increase the price of a 3-kilogram LPG canister is distressing.
It is necessary to pay close attention to President Susilo Bambang Yudhoyono’s statement a few weeks ago, which clearly indicated that he would “adjust” the price of the subsidized 3-kilogram gas canister and the nonsubsidized 12-kilogram one.
The government believe that the price disparity has sparked the practise of injecting gas from subsidized 3-kilogram canisters into 12-kilogram canisters, which has been accused of causing a series of recent gas explosions that has claimed many lives.
The President’s signal was clear, that the price of the 3- and 12-kilogam gas canisters would be adjusted so that the price gap could be narrowed. This move will only provoke a strong response from the public. People on lower incomes will have to bear the larger burden.Therefore, the government needs to act more wisely and take a stern stand to calm the situation.
Increasing the price of the 3-kilogram canister will, ovbiously, only add to people’s disappointment in this energy convertion program.
The number of gas canister explosions has yet to be reduced and even continues to increase. Safety levels for gas use are still low. And, so far, there is still no solution to overcoming the public’s concern.
The 3-kilogram LPG canister program was initially directed at the needy, therefore it is heavily subsidized by the government. However, its distribution is messy. This is not in line with the President’s recent direction — that the subsidized gas should go to the proper recepients of the subsidy.
First of all, the government should revisit the target of recepients. As of now, there are two categories currently using the 3-kilogram canisters of LPG.
First are those who previously received direct subsidies (the BLT); second, those who are not receiving the subsidy legitimately. If the government insist on narrowing the price gap between the 3- and 12-kilogram canisters, they should target the former by giving them money or vouchers to cover the difference.
If the government fails to show its empathy, it will be no wonder if the public get angry and give vent to their emotions in various ways, which could disrupt economic growth and create an inconducive situation for investment.
Considering the fact that people are still facing economic difficulties, the Golkar Party saw that it would be insensitive for the government to push for the gas price increase, particularly for the needy, in a bid to reduce the price discrepancy and to stop illegal gas decanting.
The decision to raise the price of the 3-kilogram canister should not merely be aimed at reducing the price gap and preventing the mixing of the subsidized and the nonsubsidized gas.
The House would strictly oppose such an argument. First, because the gas mixing is a criminal act that should be solved through the legal process.
Similary, the plan to reduce the price of the 12-kilogram canister would be irrelevant, because it was priced based on market calculations and domestic production (Rp 5,850 [65 US cents] per kilogam), as domestic LPG production has reached 55 percent.
The rest is exported, with its price calculation based on the CP Aramko formula. Under such a formula, the current 12-kilogam canister price is still lower than its economic price of Rp 8,000 per kilogam.
If the government reduces the price of the 12-kilogam canister, it means it will be giving the subsidy to middle-income people who, in fact, do not need it, and it will increase the burden on the state budget.
The Golkar Party urges the government to take stern, fast and effective action to prevent further gas canister explosions by optimizing coordination among ministries under the leadership of the coordinating public welfare minister.
The writer is member of House Commission VII and an initiator of the working committee on gas canisters, and a Golkar Party member of the House of Representatives.
