Bambang Ismoyo, Jakarta – Energy and Mineral Resources Minister Bahlil Lahadalia assured on Monday that there is no shortage of subsidized 3-kilogram liquefied petroleum gas (LPG) canisters, attributing recent supply disruptions to the government's new distribution scheme.
Bahlil explained that while domestic supply remains sufficient, the transition to a new distribution model has temporarily affected deliveries to retailers.
"We are not limiting the quota, nor are we reducing subsidies," Bahlil said during a press conference in Jakarta. "Rest assured, there is no shortage."
New distribution model and supply disruptions
As of February 1, the government has restricted the sale of 3-kg LPG canisters to authorized distributors in an effort to ensure that only eligible low-income families benefit from the subsidy.
The government subsidizes Rp 36,000 ($2.18) per canister, allowing it to be sold for as little as Rp 20,000 ($1.21) in the market. However, many unauthorized retailers have been selling the canisters at inflated prices, sometimes reaching Rp 30,000 ($1.82) per unit, Bahlil said.
"Previously, Pertamina supplied distributors, who then sold to agents before the canisters finally reached retailers. Along the way, according to reports reaching us, prices were being manipulated," he explained. "We are restructuring this system so that the government can regulate prices more effectively at the distributor level."
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The new system requires retailers or convenience stores to become official agents of authorized distributors if they want to continue selling subsidized LPG.
Despite the government's assurances, many consumers have reported difficulties in accessing the subsidized LPG. In East Java, for instance, some residents who previously bought LPG from nearby shops now have to travel up to three kilometers to reach an authorized distributor.
Bahlil acknowledged these concerns and urged the public to be patient. "We understand the frustration, but please allow us some time to resolve these issues," he said.