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2008/8/5, M Herman <[EMAIL PROTECTED]>:
>
>
> Indonesia May Scrap Price Approval Rule on Gas Negara (Update1)
> (Adds official's comments in fourth paragraph.)
> By Leony Aurora
> Aug. 5 (Bloomberg) -- Indonesia's energy ministry may scrap a rule
> requiring PT Perusahaan Gas Negara, the country's largest distributor of the
> fuel, to seek its approval on pricing agreements with factories and
> utilities.
> The government may also decide not to set a maximum price for the fuel,
> Evita Legowo, director general of oil and gas at the ministry, said by
> telephone today. The ministry plans to issue a regulation by the end of
> October, she said.
> The ministry's plan marks a reversal from last year when the government
> challenged Gas Negara's authority to increase prices by 10 percent to pass
> on higher fuel costs to consumers. The government is now trying to
> ``smoothen'' the way for gas supply deals to encourage more use of the fuel
> as crude oil soared to records this year.
> ``The prices should be determined by a business-to-business agreement,''
> Evita said.
> The gas distributor climbed 2.4 percent to 2,175 rupiah at 2:48 p.m. in
> Jakarta today, outperforming a 3 percent decline in the benchmark index.
> Gas Negara and Luluk Sumiarso, formerly the director general of oil and gas
> at the ministry, previously agreed on a maximum price of $11.4 per million
> British thermal units. Evita replaced Luluk on July 18.
> The Jakarta-based gas distributor, 55 percent owned by the government, was
> granted permission to raise prices by 9.7 percent to an average of $5.5 per
> million British thermal units on Aug. 1 last year. The increase was its
> third in two years.
>
> 
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