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Govt to form new body to manage subsidized LPG supply
In another policy flip-flop that led to long lines of people waiting to buy subsidized LPG at retailers and distributors, the energy ministry is now forming a new agency to oversee distribution of the subsidized cooking gas to authorized sellers.
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People stand in a long line on Feb. 3, 2025, as they wait to exchange empty 3-kilogram canisters of subsidized liquefied petroleum gas (LPG) with full ones at a distributor in Cibodas, Tangerang, Banten. (Antara Foto/Putra M. Akbar)
T
he Energy and Mineral Resources Ministry will create a new agency to oversee distribution of subsidized liquefied petroleum gas (LPG), while the government restores retailer’s permits to sell the 3-kilogram canisters of subsidized gas.
“I will form a special agency to arrange things, so the people can enjoy [purchasing subsidized LNG at] the right, affordable price from the government,” energy minister Bahlil Lahadalia said on Wednesday in Pekanbaru, Riau, according to a ministerial statement.
Bahlil also said the ministry was currently forming the agency in coordination with Pertamina Patra Niaga, the commercial arm of state-owned oil and gas giant Pertamina.
The government has walked back an abrupt decision to ban retail sales of 3 kg LPG canisters starting on Feb. 1, after the policy caused shortages and long lines at small retailers nationwide.
House of Representatives Deputy Speaker Sufmi Dasco Ahmad said in Jakarta on Tuesday that President Prabowo Subianto had instructed the energy minister to allow retailers to sell the subsidized cooking gas.
According to Dasco, who hails from Prabowo’s Gerindra Party, the energy ministry was responsible for initiating the ban on selling 3 kg LPG canisters.
He added that the President decided to intervene after receiving reports of people struggling to purchase the gas as a result of the new policy, Kompas.com reported.
