Kartini L. Makmur, Andin Aditya Rahman
Amidst the Government’s program to shift
from petrol to gas fuel, gas prices continue to increase every year , forcing consumers and industry into accepting gas at a price they can little afford and will be hesitant to pay for. Suko Hartono, General Manager of Distribution of PT Perusahaan Gas Negara (PGN), has indicated that the price of gas will rise each year by approximately 10 percent.
“Gas prices will not become cheaper, instead it will actually rise by 10 to 15 percent each year because exploration investments are increasingly expensive,” he asserted during the 2014 Indonesia Petrochemical Industry National Conference in Jakarta on Wednesday.
Mr. Hartono explained that the increase in gas fuel prices is due to insufficient domestic gas fuel supplies. To overcome this problem, Mr. Hartono said that PGN must import gas, which is the prime cause of the ever-increasing gas prices. As a consequence, gas prices in the domestic market may reach up to USD 9.8 per MMBTU (Million British Thermal Unit).
“Imports are carried out to cover deficiencies in domestic gas supplies. Consequently, in the future we will mix gas production from wells and liquid natural gas,” he asserted.
PT Perusahaan Listrik Negara (PLN) is the one of the most affected party by the continued price increases, mainly because of the vast amount of gas used to produce and distribute electricity. Suryadi Mardjoeki, Head of the Gas Division at PLN, even admitted that PLN regularly buys gas from PGN at excessively expensive prices.
“So far the gas supply for various gas power plants is acquired from PGN as the majority owner of transmission and distribution pipes, as well as transportation services in the country,” he stated.
According to Mr. Mardjoeki, the gas price offered by the PGN is too expensive, which is has resulted in unfair profits gains by PGN.
“We believe that the gas price for gas received by the PGN from upstream sources is too high. We calculate the profits of PGN in making sales to consumers and industry being as much as 40 percent,” he elaborated.
Mr. Mardjoeki indicated that PLN has reported this matter to Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources. Unfortunately, the report failed to stimulate any positive response from the Ministry of Energy and Mineral Resources.
“We are still asking the Government to determine a margin limit policy. There must be a policy where there is a maximum limit in profiting from gas sales. I feel that the gas prices offered by PGN are still quite expensive,” said Mr. Mardjoeki.
(hot/kc)