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KPPU probes suspected cooking gas monopoly at Pertamina subsidiary
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Customers line up to exchange 3-kilogram lique-fied petroleum gas (LPG) canisters in Cibodas, Tangerang city, Banten on Feb. 3, 2025. (Antara Foto/Putra M. Akbar)
T
he Business Competition Supervisory Commission (KPPU) has begun a preliminary investigation into an alleged monopoly case involving non-subsidized cooking gas sales by state-run oil and gas company Pertamina’s commercial arm.
The company in question is Pertamina Patra Niaga, which distributes liquefied petroleum gas (LPG) to customers across the country.
“The KPPU [will] begin a preliminary investigation into the alleged monopolistic practices,” KPPU studies and advocacy deputy Taufik Ariyanto said in a written statement issued on Sunday.
The investigation will focus on finding evidence to support allegations of contravention of Article 17 of Law No. 5/1999 on the prohibition of monopolistic practices and unfair business competition.
The commission has been conducting a study of non-subsidized LPG sales in Indonesia since last year, which has resulted in the uncovering of suspected monopolistic practices in the sale of non-subsidized LPG in the midstream market and selling the commodity at a higher price.
High non-subsidized LPG prices are seen as the reason for many consumers flocking to use subsidized 3-kilogram LPG canisters, said the KPPU.
The government has frequently urged better off consumers to avoid purchasing subsidized LPG to prevent the waste of taxpayers’ money, stressing that the subsidized fuel is meant only for low-income earners.
