Kartini L. Makmur, Andin Aditya Rahman
The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has put forward a proposal to increase the price of well head gas by 38 percent. The current average price for gas exported via pipelines stands at USD 15.6 MMBTU (equal to one million British thermal units), while LNG prices are on average USD 14.5 per MMBTU. Meanwhile, the domestic price for gas is USD 5.8 per MMBTU.
Rudi Rubiandini, Head of SKK Migas, stated that the plan to increase gas prices does not eliminate the possibility of price disparities between gase from different sources. Price disparities are caused by a number of factors, such as land or marine activities, reservoir depth, and the amount of domestic reserves.
“Everything affects the economic value that makes gas prices of every field different,” he explained.
Such a plan from SKK Migas to raise gas prices is a follow-up to the program launched by the Government to increase national gas usage and reduce dependency on petrol. This is also asserted by Jero Wacik, Minister of Energy and Mineral Resources, who said that his ministry will continue to discourage the dependence on petrol.
“We have a mandate to make gas fuel a priority. Slowly we will leave petrol behind and start in the direction towards gas fuel,” stated the Minister.
In response to this issue, Andhika Anindyaguna, President Director of PT. Sugih Energi, Tbk., applauded the Government’s plan to raise domestic gas prices.
“This plan can be seen as a step taken by the Government to restructure policies to further support the gas industry,” he commended.
Until now, as Andhika pointed out, gas companies have been required to sell their products at the prices set by the Government, while gas prices consistently increased each semester. He further added that other than the restructuring of policies and increasing gas prices, the Government will also need to provide sufficient infrastructure to continue to encourage gas usage by the public.
After his criticism on gas prices earlier this month, Andhika is now complaining about the unclear provisions on the construction of gas fuel stations.
“Who is actually responsible for gas fuel stations, the Government or the private sector? This mechanism should also be regulated,” he concluded.
(hot/kc)
Kartini L. Makmur, Andin Aditya Rahman
The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has put forward a proposal to increase the price of well head gas by 38 percent. The current average price for gas exported via pipelines stands at USD 15.6 MMBTU (equal to one million British thermal units), while LNG prices are on average USD 14.5 per MMBTU. Meanwhile, the domestic price for gas is USD 5.8 per MMBTU.
Rudi Rubiandini, Head of SKK Migas, stated that the plan to increase gas prices does not eliminate the possibility of price disparities between gase from different sources. Price disparities are caused by a number of factors, such as land or marine activities, reservoir depth, and the amount of domestic reserves.
“Everything affects the economic value that makes gas prices of every field different,” he explained.
Such a plan from SKK Migas to raise gas prices is a follow-up to the program launched by the Government to increase national gas usage and reduce dependency on petrol. This is also asserted by Jero Wacik, Minister of Energy and Mineral Resources, who said that his ministry will continue to discourage the dependence on petrol.
“We have a mandate to make gas fuel a priority. Slowly we will leave petrol behind and start in the direction towards gas fuel,” stated the Minister.
In response to this issue, Andhika Anindyaguna, President Director of PT. Sugih Energi, Tbk., applauded the Government’s plan to raise domestic gas prices.
“This plan can be seen as a step taken by the Government to restructure policies to further support the gas industry,” he commended.
Until now, as Andhika pointed out, gas companies have been required to sell their products at the prices set by the Government, while gas prices consistently increased each semester. He further added that other than the restructuring of policies and increasing gas prices, the Government will also need to provide sufficient infrastructure to continue to encourage gas usage by the public.
After his criticism on gas prices earlier this month, Andhika is now complaining about the unclear provisions on the construction of gas fuel stations.
“Who is actually responsible for gas fuel stations, the Government or the private sector? This mechanism should also be regulated,” he concluded.
(hot/kc)