Indonesia Asks Gas Negara to Review Gas Price, Wacik Says
Stock Chart for Perusahaan Gas Negara Persero Tbk PT (PGAS)
Indonesia’s government asked PT Perusahaan Gas Negara to review a proposed gas price-increase, considering the cost borne by industrial customers.
“We’ll calculate a gas price that will allow the industry to carry on their business and still make a profit,” Energy and Mineral Resources Minister Jero Wacik told reporters in Jakarta today. “It will be unfair to keep gas prices unattractive for producers.”
Gas Negara, Indonesia’s biggest gas distributor, raised its selling price by 50 percent last month to as much as $10.13 per million British thermal units for industrial users in Jakarta, West Java and Banten, Investor Daily reported May 15. The company had previously agreed to buy natural gas at higher prices from ConocoPhillips and state oil and gas company PT Pertamina, the nation’s energy regulator BPMigas said May 8.
The government will announce a decision on the gas price within a week, Wacik said.
Gas Negara shares rose 0.7 percent to 3,525 rupiah a share at 2:28 p.m. Jakarta time.
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