3kg LPG is no longer to be sold by retailers or grocery stores: Indo ESDM

Bahlil Lahadalia, the Minister of Energy and Mineral Resources (ESDM) has announced the reasons behind the barring of LPG sales at grocery stores and the retailers which was made effective from February 1, 2025. It is reported that it will be available at official Pertamina bases. The residents from various regions claim that this could be a difficult task for them to purchase a 3 kg LPG/subsidized gas.  

This issue has been addressed and the reason behind this initiative by the Indonesian government explained by the Minister Bahlil Lahadalia,

“Please give us a little time, we will finish this. The item (3kg LPG) is not rare, I guarantee that. 

So far, Pertamina has been supplying to agents, agents supplying to depots, depots supplying to retailers. The reports that came to us were that there were those who manipulated the prices. So, if the prices at the base are increased, the base’s permit can be revoked, a fine can be given and we can find out who the players are”

The price of the subsidised 3kg LPG is said to be IDR 12,000 per kg or around IDR 36,000 as per the statement of Bahlil. Whereas, the Finance Minister Mulyani has stated that the official price of the subsidy 3 kg LPG should be at IDR 12,750 per cylinder. On Monday, the price amounts which were observed by the Kompas’ varies from both which are as follows.

Bahlil claims that the government can control only the price of 3 kg LPG at official base level and the price at the retail level is formed by market mechanisms based on the demand.

“We hope that this subsidy will be received by those who are entitled, not to make things difficult” said Prasetyo Hadi, the Minister of State Secretary.