Pertamina Urges East Java Community to Purchase 3kg Subsidized LPG from Official Pertamina Outlets to Obtain IDR 16,000 Fixed Price

Surabaya, June 21, 2023 - In response to 3kg LPG availability and soaring prices in several areas in East Java, Pertamina Patra Niaga assures that LPG stock in the Pertamina distribution chain up to the official 3kg LPG outlets is sufficient.

What has been a concern for the public regarding prices and availability is at the retailer/small grocery store level, which is beyond Pertamina's authority for supervision and regulation.

Ahad Rahedi, Area Manager of Communication, Relations, and Corporate Social Responsibility (CSR), stated that they are concerned that if the regional government and relevant authorities do not act swiftly, there may be parties that intentionally create such situations to gain profits. "The public should not worry; the easiest way is to purchase from the nearest Official Pertamina Outlets/SPBU (Petrol Stations) to obtain stock that is always available at the Maximum Retail Price (HET) of IDR 16,000, as determined by the East Java Governor," said Ahad.

Ahad added that currently, in every village/subdistrict in East Java, there is at least one official Pertamina LPG outlet. "Since 2017, Pertamina has had the One Village One Outlet (OVOO) LPG program, which has achieved 100% coverage for East Java for some time. Therefore, there is no longer a reason for people to have difficulties finding LPG, as there is a guaranteed outlet in their village," Ahad further explained.

Currently, the 3kg LPG outlets in East Java are 39,931. The LPG stock in East Java is sufficient, amounting to 24,377 metric tons, with a daily consumption of 4,673 metric tons.

"LPG outlets serve consumers at the end level, directly to users. The analogy is that the outlets and retailers are similar to petrol stations and retail fuel sellers. However, it is a shame that many people complain about the lack of retailers and are reluctant to go to the outlets, citing long distances, even though there is an official outlet in their village with stock always available at the fixed price," he added.

In addition to monitoring retailers, the regional government (Pemda) is also expected to intensify consumer education on LPG eligibility according to the mandate in the Circular Letter from the Director General of Oil and Gas No. B2461/MG.05/DJM/2022. "There are still many hotels, restaurants, and cafes that fall under the jurisdiction of the regional government and use 3kg LPG, which is not intended for their purposes. They purchase from retailers, depriving the people who need it of their rights," Ahad conveyed.

Several Regional Governments Conduct Field Inspections

As it is known, in Nganjuk, there has been an increase in demand and a shortage of 3kg LPG at the retailer level recently. The local government, with Pertamina, conducted direct inspections last week. The activities began with stock checks at the 3kg LPG outlets in Payaman Subdistrict, Nganjuk District, followed by inspections of several businesses.

Nanang Trisno S as Junior Expert for Goods Quality Testing representing the Head of Industry and Trade Office of Nganjuk Regency, said that conditions in Nganjuk Regency for supplies are sufficient, “We urge the public to buy directly at the 3kg LPG outlets located in each sub-district/village with more than one outlet,” said Nanang.

Arif, one of the laundry business owners on Imam Bonjol Payaman Street, Nganjuk, did not expect to be visited by the Nganjuk District Inspection Team. He was unaware that his business falls under the category of those prohibited from using subsidized LPG. "I did not know it was forbidden because there was no socialization. I bought this 3kg LPG from a retailer. When I was given an understanding, I willingly exchanged the cylinder because I wanted to help the community who had difficulty obtaining 3kg LPG. I hope all medium to upper-class business owners will do the same," said Arif.

A similar situation also occurred in Malang. Inspections were carried out by the Regional Inflation Control Team (TPID) of Malang with Pertamina Rayon Malang Raya on Friday, June 9. Some visited LPG outlets included those in the Mergan area to the Kasin area, as well as several culinary businesses in the Bendungan Sutami Street area.

Eny Handayani, the Head of the Economy, Infrastructure, and Natural Resources Division (Kabag Pisda) of Malang City, who also serves as the TPID secretariat, explained that based on monitoring results, the gas distribution from Pertamina to the petrol stations is running normally according to the allocation. However, they are still looking for reasons for the abnormal conditions of the LPG melon stock. Because from yesterday's monitoring, there were 3 kg LPG users who did not meet the intended usage.

"We have seen it in two petrol stations, in the Kasin and Mergan areas. One of them is the Restu Jaya outlet, and the second is Pak Bambang's outlet. Both were observed to be sufficiently stocked, with no 3 kg LPG shortage," Eny explained yesterday.

She continued that in terms of supply, the LPG melon availability is still sufficient. Because each gas outlet still receives normal supplies from Pertamina, and within two to three days, they always have 100 cylinders in stock.

Regarding the recent scarcity, Eny suspects that there is improper targeting of the 3 kg LPG sale at the retail level. It should be noted that 3 kg LPG is subsidized LPG, which should not be consumed by financially capable residents, especially business operators with revenues exceeding IDR 1 million.

"In yesterday's inspection, we also found several culinary businesses that were observed to be using 3 kg LPG. With Pertamina, we immediately urged them to switch to non-subsidized gas," said Eny.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**

Share this post