ID :
17260
Thu, 08/28/2008 - 11:23
Auther :
Shortlink :
http://m.oananews.org//node/17260
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NOT THE RIGHT TIME TO RAISE LPG PRICE AMIDST HIGH INFLATION IN AUGUST
Jakarta, Aug 27 (ANTARA) - Increasing the price of liquefied petroleum gas (LPG) in 12-kg and 50-kg cylinders on the occasion of the fasting month was not the right time, as the August inflation was higher than predicted.
This condition would affect the projected inflation of 11 to 12 percent, Head of the Central Bureau of Statistics (BPS) Rusman Heriawan said here, on Wednesday.
Even now that the price increase has yet to be set, the price of PLG has become uncontrollable, so that state oil company Pertamina's price for the market became unclear, especially for places outside Java.
According to the BPS, the July inflation reached 1.37 percent, while the January-July inflation stood at 8.85 percent, and the year-on-year inflation reached 11.9 percent.
He reminded that the weight of LPG and kerosene as fuel for household use based on the inflation tray reached 2.15 percent, not to mention long term affect on food industries.
He also said that if Pertamina wanted once again to raise the price of LPT in 12-kg and 50-kg containers, it should not be done in the next two months (September and October) as in these two months the inflation rate had been predicted to increase significantly.
BPS predicted that the LPG price increase may seriously affect the government kerosene-to-LPS conversion in a bid to reduce oil subsidy.
"Now consumers who normally use LPG in 12-kg cylinders, would turn to subsidized 3-kg containers, and this change may eventually cause a serious lack of LPG in 3-kg containers," he said.
If this happened, Rusman said, Pertamina would lose a great deal of additional revenue from the a gas price hike, poor people especially in Java, would have problems to get kerosene, because the supply of this fuel would be reduced.
On Monday, Pertamina increased the prices of LPG in 12-kg and 50-kg containers respectively to Rp69,000 and Rp362,750 from Rp63,000 to Rp343,900.
Previously the prices of LPG already rose to Rp5,250 from Rp4,250 per kg early in July, 2008, while LPG in three kg containers was sold at Rp15,000.
This condition would affect the projected inflation of 11 to 12 percent, Head of the Central Bureau of Statistics (BPS) Rusman Heriawan said here, on Wednesday.
Even now that the price increase has yet to be set, the price of PLG has become uncontrollable, so that state oil company Pertamina's price for the market became unclear, especially for places outside Java.
According to the BPS, the July inflation reached 1.37 percent, while the January-July inflation stood at 8.85 percent, and the year-on-year inflation reached 11.9 percent.
He reminded that the weight of LPG and kerosene as fuel for household use based on the inflation tray reached 2.15 percent, not to mention long term affect on food industries.
He also said that if Pertamina wanted once again to raise the price of LPT in 12-kg and 50-kg containers, it should not be done in the next two months (September and October) as in these two months the inflation rate had been predicted to increase significantly.
BPS predicted that the LPG price increase may seriously affect the government kerosene-to-LPS conversion in a bid to reduce oil subsidy.
"Now consumers who normally use LPG in 12-kg cylinders, would turn to subsidized 3-kg containers, and this change may eventually cause a serious lack of LPG in 3-kg containers," he said.
If this happened, Rusman said, Pertamina would lose a great deal of additional revenue from the a gas price hike, poor people especially in Java, would have problems to get kerosene, because the supply of this fuel would be reduced.
On Monday, Pertamina increased the prices of LPG in 12-kg and 50-kg containers respectively to Rp69,000 and Rp362,750 from Rp63,000 to Rp343,900.
Previously the prices of LPG already rose to Rp5,250 from Rp4,250 per kg early in July, 2008, while LPG in three kg containers was sold at Rp15,000.
