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Household gas program cuts LPG monthly imports by Rp 18.08 billion

Jakarta Post - March 7, 2019

Stefanno Reinard Sulaiman, Jakarta – The Downstream Oil and Gas Regulatory Agency (BPH Migas) says a gas network program that connects gas pipelines to households has helped reduce the import of liquefied petroleum gas (LPG) by Rp 18.08 billion (US$1.28 million) per month in 2018.

BPH Migas tariff regulatory section head Irawan Bayu Kusuma said by connecting gas networks to more households, fewer people would rely on LPG sold in 3 and 12 kilogram canisters.

"We managed to cut LPG imports by 2,831 tons per month, worth Rp 18.08 billion, in 2018," said Irawan in Jakarta on Tuesday. Indonesia still imports 5 million tons of LPG, 60 percent of the country's consumption.

Therefore, the official expressed the hope that the government could accelerate the gas network program to facilitate people in shifting from LPG in canisters.

Meanwhile, BPH Migas chairman Fansurullah Asa said in a press statement that the price of gas distributed through pipelines was lower than the price of LPG in canisters. He said the prices were based on the calculation of project profitability and people's purchasing power.

There are two schemes in gas pricing – Rp 4,250 per cubic meter for household and small customers such as apartments and social service buildings and Rp 6,250 per cu m for middle to luxury houses and businesses. Both prices are 15 percent lower than the price of LPG in canisters.

Since its launch in 2009, the national gas network program has connected gas pipelines to 235,935 households in 31 regions as of 2017. In 2018, there were 89,906 more gas connections in at least 18 locations.

The government is targeting to connect 5 million households to gas pipelines by 2025. (bbn)

Source: https://www.thejakartapost.com/news/2019/03/06/household-gas-program-cuts-lpg-monthly-imports-by-rp-18-08-billion.html