Camelia Pasandaran, Jakarta – In response to a series of explosions involving three-kilogram gas cylinders, which have left dozens dead and scores injured, a government minister said on Tuesday that regulators would increase the price of the gas for the small cylinders.

But that is bad news for the low-income families that depend on them for a cheap source of cooking fuel.

"We hope to increase it to Rp 5,600 [63 cents] from the current Rp 4,000 per kilogram," Coordinating Minister for People's Welfare Agung Laksono said, adding that the final decision on the proposed price hike would be made on Thursday.

"I believe this discrepancy is OK. In any case, it will not be a burden for the public. There is also a proposal for direct subsidies to be given for cooking gas."

A price disparity between the 3-kg cylinders and the non-subsidized 12-kg cylinders has led unscrupulous traders to siphon the gas from the smaller canisters to fill the larger ones.

The siphoning is done with needles and syringes, which damages the canisters' valves. The damaged valves have been blamed for the explosions.

President Susilo Bambang Yudhoyono has ordered his ministers to look into the problem and the price disparity between the 12-kg and 3-kg cylinders, which are being distributed under a government program to encourage low-income households to switch from kerosene to cheaper liquid petroleum gas.

"I hope the ministries, including the director of Pertamina [a state-owned oil and gas company] take preventive steps," Yudhoyono said. "I want the valves to be in good condition. There should be no defects at all. "

Karen Agustiawan, president director of Pertamina, said she wanted an "economic gas price" of Rp 7,826 per kilogram. LPG currently retails for between Rp 4,333 and Rp 6,333 a kilogram.

"Even if we apply the 'economic gas price,' it will still be cheaper than kerosene," she said. The government scrapped all state subsidies for kerosene in June.

Agung said it would be easier for the government to increase the price of the 3-kg gas cylinder, rather than lower the price of the 12-kg version.

"If we reduce the price [of the 12-kg cylinder], it will make the subsidy larger," Agung said. "It will allow middle-class people, who don't deserve the subsidy, to get it anyway. It's better to increase the price of the 3-kg cylinder, but still provide the aid for the poor."

But both Karen and Agung promised that to offset the effect of the price hikes on the poor the government would dole out direct cash subsidies.

Agung said the government might issue vouchers for the poor, while the program to promote the use of LPG would continue. He said plans to provide direct cash stipends to poor families following the hike were still being drawn up.