LPG Subsidy

The increase of non-subsidized LPG price of 12 kg has an impact on consumer's decision to switch to cheaper products. Consumers switch from 12 kg LPG to LPG 3 kg which is a subsidized product and much cheaper.

Before today's price hikes PT Pertamina (Persero) has raised the price of 12 kg of LPG in January 2014 and September 10, 2014.

An owner of LPG store in North Sunter Work Street, North Jakarta, Febbi admitted in his area more and more consumers are turning to 3 kg LPG. According to many consumers who sell 12 kg tubes, then replace it with a tube of size 3 kg.

"Since the increase in LPG price of 12 kg, September 2014 has been a lot of people Sunter Housing which replaces their tubes to 3 kg,"..

He received sales of 12 kg of LPG tubes. Price of 12 kg LPG tube appreciated varies, from Rp 150.000 / tube to Rp 200.000 / tube.

Instead, consumers buy 3 kg LPG tubes. Febbi sell 3 kg LPG tube Rp 150.000 / tube is included with its contents.