Minister of Energy and Mineral Resources, Arifin Tasrif, has expressed his opposition to PT Perusahaan Gas Negara's (PGN) plan to adjust the prices of commercial industrial gas. The Minister of Energy and Mineral Resources has urged the state-owned enterprise to refrain from increasing prices due to no changes in upstream pricing.

As reported by bisnis.com, Arifin stated that the relatively stable upstream prices make it unnecessary to implement a price increase. Instead, there should be a reduction in distribution tariffs, thereby increasing the utility value of industrial gas for users.

Previously, PGN had mentioned plans to increase certain non-subsidized natural gas prices, although these plans have not yet been implemented. In a press release last week, dated September 7, 2023, Rachmat Hutama, Secretary of PGN, explained that any price adjustments made by PGN must adhere to the regulations set forth by the Minister of Energy and Mineral Resources, ensuring compliance with governmental policies.

Rahmat also elaborated on how the commercialization of gas is influenced by various supporting factors, including supply sources, pricing, as well as midstream and downstream costs. PGN is committed to commercializing gas to remain a strategic partner of the government in achieving net-zero emissions.

PGN offers various customer tiers that differentiate the pricing costs to be borne. Currently, Bronze 1 customers are charged at a rate of Rp. 6,000 per cubic meter, with plans to increase this rate to Rp. 10,000 per cubic meter on January 1, 2024.

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