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Govt finalizes gas price regulation for industry
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Engineers work at an oil and gas processing site. The government is finalizing a specific regulation to lower gas prices for industrial customers, to help local industries compete against imported goods. (ANTARA/R.Rekotomo)
T
he government will issue a specific regulation on the latest gas pricing formula for industrial customers, to help local industries win amid competition from imported goods.
According to Energy and Mineral Resources Minister Sudirman Said, the government has finalized a presidential regulation to lower gas prices for industry and increase the competitiveness of their products against imported goods.
"We are waiting for a presidential regulation on gas prices for industry. It is now being finalized," he said at the Office of the Coordinating Economic Minister in Jakarta on Wednesday.
At first, the regulation was targeted to come into effect on Jan. 1, after being mentioned in the third economic policy packaged issued by President Joko “Jokowi” Widodo in October last year. The regulation aimed to lower gas prices by US$1 to $2 per million British thermal unit (mmbtu).
In doing so, the government prepared two formulas. First was slashing the gas price at the downstream level by $1 per mmbtu, allowing the industry to enjoy prices of $5 to $6 per mmbtu. Second, the gas price in the upstream sector could be reduced by $2 to $6 per mmbtu. (ags)
