GOVT NOT TO RAISE LPG PRICE UNTIL 2009 ELECTIONS

Jakarta, Sept. 3 (ANTARA) - The government has decided not to raise the price of LPG (liquefied petroleum gas) in 12-kg and 50-kg cylinders until at least the implementation of the 2009 general elections, a spokesman said.

President Susilo Bambang Yudhoyono took the decision in a special meeting at his office here on Wednesday which was held to discuss the people's panic-stricken response to state oil company Pertamina's plan to increase the LPG price every month until it reaches its "economic" level.

State Enterprise Minister Sofyan Djalil following the meeting told the press that the government had decided to ask Pertamina to stop increasing the price of LPG in 12-kg and 50-kg cylinders after having raised it by Rp500 per kg last month.
The minister said the timing to increase the LPG price by Pertamina was not right because it was in the runup to the Fasting Month (Ramadhan) and Eid Fitr.
"We guarantee there will be no further LPG price hikes until next year, until a further decision, until the polls," the minister said.
If the world's oil price was stable, there would be no need to increase the LPG price further, he said.
To compensate Pertamina's financial losses, the government would allow a decrease in the government's dividends in Pertamina, he said.
"However, it needs to be calculated first. How it will be calculated, I cannot explain it now," he said.
The government also asked Pertamina to guarantee LPG supply to the public optimally.