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View all search resultsClosed LPG distribution system will begin in 2016, says Pertamina
State oil and gas company PT Pertaminaâs marketing operation region I for northern Sumatra says the government is planning to apply a closed distribution system for 3-kilogram liquefied petroleum gas (LPG) canisters nationally
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S
tate oil and gas company PT Pertamina's marketing operation region I for northern Sumatra says the government is planning to apply a closed distribution system for 3-kilogram liquefied petroleum gas (LPG) canisters nationally.
'We've heard that the government's plan to apply the closed LPG distribution system nationally will take effect in 2016. The system will be immediately piloted in certain areas. The authority for distribution will be in the hand of local administrations,' the company's spokesperson Brasto Galih Nugroho said as quoted by Antara, on Tuesday.
He said Pertamina supported the measure taken by the government as an effort to prevent leakage in the distribution of the 3-kg LPG canisters to consumers. The closed distribution system also aimed at ensuring that the subsidized LPG would reach the proper targets, namely people in low income brackets and micro businesses.
Under the system, the government will sell the 3-kg LPG canisters only to consumers holding control cards it will issue based on surveys. The use of such a control card was triggered by consumption shifting from the 12-kg LPG canisters to the subsidized 3-kg LPG canisters because of the absence of purchasing limitations.
'A resident provided with a control card can buy subsidized LPG canisters from a designated distribution center,' said Brasto.
'The implementation will depend on the readiness of the local administrations and we, Pertamina, as a distributor agency, will be responsible only for the distribution of the commodity,' he added.
The Energy and Mineral Resources Ministry has said it will pilot the closed distribution system of the 3-kg LPG canisters in three areas in June.
The ministry's acting director general of oil and gas, I Gusti Nyoman Wiratmaja Puja, said earlier that the three areas were Bali, Bangka and Batam.
'The try-out will be conducted for four months. We will study the advantages and weaknesses of the system,' he said, adding that after the trial the government would implement the system nationally at the beginning of 2016.
With a subsidy on the 3-kg LPG canisters totaling Rp 26 trillion (US$2 billion), I Gusti said, each family head and micro business could get a subsidy of around Rp 42,000 to 45,000 per month.
'After they use the subsidy provided, consumers must buy the 3-kg LPG canisters at set prices,' he said. (ebf)(++++)
