Government Blames Pertamina

VIVAnews - The government evaluated that the reason behind LPG scarcity was hampered supply and increased consumption.

Director General of Oil and Gas at the Department of Energy and Mineral Resources Evita Herawati Legowo said that limited LPG production is prone to obstructed distribution. "Delayed imports are also part of the [distribution] problem," she said during a hearing with the House of Representatives (DPR) on Thursday, Dec 11.

From demand side, the consumption of subsidized LPG has increased. High price disparity between the 3-kg LPG and 12-kg and 50-kg LPG has triggered consumers to purchase the subsidized 3-kg LPG.

To solve the problem, said Evita, the government has also requested Pertamina to re-schedule imports to avoid delay. Pertamina must also be ready to add LPG supply at any given time.

According to Evita, Pertamina should also build LPG fuel station, add the number of agents and depots, anticipate natural disturbance with appropriate transportation means, and cooperate with other companies on utilizing storage facilities.

Pertamina, Evita went on, must improve control over usage of 3-kg LPG and coordinate with the controller in observing the balance between 3-kg and 12-kg LPG.

Evita said that it is not only Pertamina that is asked to anticipate the LPG scarcity, the government also carries out development and control, mainly revising partnership agreement with the dealers, and encourages private companies in supplying 3-kg LPG.

Translated by: Bonardo Maulana Wahono