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View all search resultsGovernment still working on draft scheme for single-price LPG
The government's plan to impose a single price for subsidized LPG canisters across all regions, to be legalized via a Perpres, aims to ensure even distribution and a fair price for all eligible consumers by preventing market manipulation.
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A crowd fills a sidewalk on Feb. 3, 2025, as they wait to exchange empty 3-kilogram canisters liquefied petroleum gas (LPG) at a distributor in Cibodas, Tangerang, Banten, following the government’s new policy banning retailers from selling the subsidized cooking gas. (Antara Foto/Putra M. Akbar)
T
he government is drafting a scheme to implement a single price for 3-kilogram canisters of liquefied petroleum gas (LPG) prior to the issuance of a presidential regulation (Perpres) to provide a legal basis.
Deputy Energy and Mineral Resources Minister Yuliot Tanjung said the central government would be setting the price for the new nationwide scheme.
“Because this is single-price LPG, the price will be determined by the government. If we leave it up to the regional administrations, there would be price differences,” he said at the ministry on Friday, as quoted by state news agency Antara.
Yuliot added that the single-price LPG schemed aimed to provide a fair price across all regions and targeted poor consumers.
He also admitted that the government still had some work to do in supervising the distribution of single-price LPG, especially at the retailer level. Yuliot noted that some regions had to rely on kerosene because they lacked access to the LPG supply, and the government would be preparing a regulation to solve this problem.
The LPG procurement scheme will be supervised by Pertamina Patra Niaga, the trading subsidiary of state-owned energy giant PT Pertamina, “Similar to how the volume of fuel supply is carried out by BPH Migas,” Yuliot said as quoted by CNN Indonesia, referring to the Downstream Oil and Gas Regulatory Agency.
“However, we must also see how the supervision will be in the field,” he added.
