Pertamina's corporate communications vice president, Ali Mundakir, said that following the recent increase in the 12 kg LPG price, half of all consumers may turn to the 3 kg LPG cylinders.

'€œWith regard to the latest conditions, Pertamina will increase the supply of 3-kg LPG cylinders in anticipation of a jump in demand,'€ he said in a statement in Jakarta on Sunday as quoted by Antara news agency.

Ali further explained that the company would maximize the use of gas filling stations (SPBU) as distribution points for both 3-kg and 12-kg LPG cylinders so that people had easier access to the products.

'€œIf needed, Pertamina is also ready to carry out market operations,'€ he said, adding that together with the National Police, Pertamina would conduct market surveys to prevent illegal LPG mixing and stockpiling.

As of Jan. 1, Pertamina increased the price of non-subsidized 12-kg LPG cylinders by 68 percent to reduce its financial losses of, on average, Rp 6 trillion (US$492 million) per year.

At the distribution level,12-kg LPG sells for Rp 9,809 per kg, up from Rp 5,850; or Rp 117,708 per cylinder, up from Rp 70,200. At the consumer level, 12-kg LPG sells for between Rp 130,000 and Rp 140,000 per cylinder.

The increased price for consumers varies depending on the distance between filling stations and supply points. '€œWith the price increase, our losses will be reduced to only around Rp 2 trillion,'€ Ali said. (ebf)

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