Kartini L Makmur, Andin Aditya Rahman
The natural gas industry has applauded the Government’s decision to raise the price of subsidized fuel as higher fuel costs increases price disparities which encourages demand for gas. This is one step from the Government but agiant leap in organizing policies to further encourage the gas industry.
“A reasonably high price disparity between the price of gas and subsidized fuel has made people aware that gas also offers efficiency because of its cheap price,” stated Andhika Anindyaguna, President Director of PT. Sugih Energy, Tbk., during a seminar titled “Exploring Entrepreneurship in the Oil and Gas Industry” at Trisakti University, Jakarta, last Friday.
Andhika, however, criticized the regulatory framework governing the gas industry as it currently leaves many issues unresolved. According to Andhika, the Government has not been decisive enough in establishing a regulation to organize the downstream gas industry. This has caused the price of gas to steadily rise year-on-year, but gas businesses are forced to sell at a price determined by the Government.
“This will surely not encourage growth of the gas industry. Even though the Government has launched a program to transfer the use of subsidized fuel to other sources of energy,” Andhika said.
In the same seminar, Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources, asserted the Government has prepared a strategy to determine the optimum nationalgas price. This is also connected to the Government’s efforts to replace subsidized fuel with natural gas.
“We will later conduct pricing strategies. As for the price of gas, it may rise,” he stated.
According to the Deputy Minister, these pricing strategies have commenced with the Government’s decision to increase subsidized fuel prices. That decision, the Deputy Minister said, also considered the development of the gas industry.
“Consumers will of course benefit more from converting to gas. This is an opportunity that we can open to gas businesses. That is certain,” he concluded.
(hot/kc)
Kartini L Makmur, Andin Aditya Rahman
The natural gas industry has applauded the Government’s decision to raise the price of subsidized fuel as higher fuel costs increases price disparities which encourages demand for gas. This is one step from the Government but agiant leap in organizing policies to further encourage the gas industry.
“A reasonably high price disparity between the price of gas and subsidized fuel has made people aware that gas also offers efficiency because of its cheap price,” stated Andhika Anindyaguna, President Director of PT. Sugih Energy, Tbk., during a seminar titled “Exploring Entrepreneurship in the Oil and Gas Industry” at Trisakti University, Jakarta, last Friday.
Andhika, however, criticized the regulatory framework governing the gas industry as it currently leaves many issues unresolved. According to Andhika, the Government has not been decisive enough in establishing a regulation to organize the downstream gas industry. This has caused the price of gas to steadily rise year-on-year, but gas businesses are forced to sell at a price determined by the Government.
“This will surely not encourage growth of the gas industry. Even though the Government has launched a program to transfer the use of subsidized fuel to other sources of energy,” Andhika said.
In the same seminar, Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources, asserted the Government has prepared a strategy to determine the optimum nationalgas price. This is also connected to the Government’s efforts to replace subsidized fuel with natural gas.
“We will later conduct pricing strategies. As for the price of gas, it may rise,” he stated.
According to the Deputy Minister, these pricing strategies have commenced with the Government’s decision to increase subsidized fuel prices. That decision, the Deputy Minister said, also considered the development of the gas industry.
“Consumers will of course benefit more from converting to gas. This is an opportunity that we can open to gas businesses. That is certain,” he concluded.
(hot/kc)