PT Pertamina posts losses on sale of non-subsidized LPG

Indonesia’s state-owned oil and gas company, PT Pertamina, posted a Rp4.3 trillion (US$468 million) loss from the sale of subsidized fuel oils and non-subsidized liquefied petroleum gas (LPG). Sale of non-subsidized LPG amounted to almost Rp3.8 trillion (US$413.62 million). PT Pertamina’s President and Director explained, “The losses were caused by an increase in the purchasing price of LPG while the selling price of LPG in 12-kg cylinders which was far below its economic price was not raised.” In 2011, the company earned Rp288.45 trillion (US$31.39 billion) from the sale of subsidized fuel oils, but operating costs reached Rp299.91 trillion (US$32.64 billion), resulting in losses amounting to Rp460 million (US$50,070). PT Pertamina earned Rp3 trillion (US$326.54 million) from the sale of subsidized LPG in 2011, which reached 3.26 million tons. The company’s net profit in 2011 was Rp21 trillion (US$2.28 billion), 10% higher than its target of Rp19.77 trillion (US$2.15 billion). (February 17, 2012)