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2% of 12-kg LPG customers predicted to shift to 3-kg LPG canisters
State-run oil and gas company PT Pertamina has predicted that 2 percent of users of non-subsidized 12-kilogram (kg) liquefied petroleum gas (LPG) canisters are likely to switch to the 3-kg LPG canisters following the former's price rise
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tate-run oil and gas company PT Pertamina has predicted that 2 percent of users of non-subsidized 12-kilogram (kg) liquefied petroleum gas (LPG) canisters are likely to switch to the 3-kg LPG canisters following the former's price rise.
Pertamina sales and marketing director Hanung Budya said, however, that the switch would not exceed the 5.013 million metric tons quota that had been allotted for 3-kg LPG canisters in the 2014 state budget.
"We have a monitoring system to prevent too many people from switching to 3-kg LPG canisters," Hanung said during a meeting on Monday at the House of Representatives' Commission VII overseeing energy, as quoted by kontan.co.id.
The monitoring system, known as simol3k, is aimed at the early detection of shifts in consumers, as well as the distribution of bootleg LPG canisters.
With this system, Pertamina is able to monitor the distribution of 3-kg LPG canisters to 3,400 agents and 143,000 bases nationwide.
According to Energy and Mineral Resources Ministry Decree No. 26/ 2009 on LPG supplies and distribution, 3-kg LPG canisters are only intended for households with a maximum monthly income of Rp 1.5 million (US$129), and small enterprises with revenues of less than Rp 50 million a month.
Pertamina increased the price of non-subsidized LPG last Thursday - to cut its massive losses in the LPG business - to Rp 1,500 per kg of LPG, taking the cost of a 12-kg canister to Rp 18,000. (nfo)
