Indonesia to Raise LNG Price for Industry Soon

Indonesia to raise LNG price for industry soon

JAKARTA, March 7 (Xinhua) — Indonesia’s state oil company PT Pertamina would soon raise the price of liquefied natural gas (LNG) for industrial use in a bid to cut shortage, company spokesman Muchamad Harun said here Tuesday.

The hike would range from 6,000 to 7,000 rupiah (about 70 U.S. cents) per kilogram, from the current price of 4,250 rupiah per kilogram, said Harun.

Currently, Indonesia bought the gas from the international market at a price of 700 U.S. dollars a metric ton, he said.

“For industry, we have a plan to increase price, we will adjust the hike to market price. The price of gas in international market is 700 U.S. dollars per metric ton, one kilogram is about 70 cent, or about 6,000 to 7,000 rupiah,” said Harun.

The spokesman said Pertamina would wait for a signal from the government, the major stakeholder of the company, when the hike would kick off.

When asked when the hike would begin, he said “the sooner the better, that means cutting our shortage.”

However, he said Indonesia would not raise the gas price for household this year.

LPG for industry accounts for about 30 percent of the country’s gas demand, said Harun.