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Customers to shift to 3-kg LPG canisters
State-run oil and gas company PT Pertamina has predicted that about 2 percent of consumers of non-subsidized 12-kilogram liquefied petroleum gas (LPG) canisters will switch to the cheaper 3-kg LPG canisters following the formerâs price increase
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tate-run oil and gas company PT Pertamina has predictedthat about 2 percent of consumers of non-subsidized 12-kilogram liquefiedpetroleum gas (LPG) canisters will switch to the cheaper 3-kg LPG canistersfollowing the former's price increase.
Pertamina sales and marketing director Hanung Budya said, however, that the switch would not cause consumption to exceed the 5.013-million-metric-ton quota that had been allotted for 3-kg LPG canisters in the 2014 state budget.
'We have a monitoring system to prevent too many people from switching to 3-kg LPG canisters,' Hanung said during a meeting on Monday with House of Representatives Commission VII on energy, as quoted by kontan.co.id.
The monitoring system, known as simol3k, is aimed at early detection of shifts in consumers, as well as the distribution of black market LPG canisters.
With this system, Pertamina is able to monitor the distribution of 3-kg LPG canisters to 3,400 agents and 143,000 bases nationwide.
According to Energy and Mineral Resources Ministry Decree No. 26/2009 on LPG supplies and distribution, 3-kg LPG canisters are only intended for households with a maximum monthly income of Rp 1.5 million (US$129) and small enterprises with revenues of less than Rp 50 million a month.
Pertamina increased the price of non-subsidized LPG last Thursday to Rp 1,500 per kg of LPG to reduce huge losses in the LPG business, bringing the cost of a 12-kg canister to Rp 18,000.
