OREANDA-NEWS. May 25, 2012. Distribution of 3-kg LPG reached 1.23 million MT for the first quarter of 2012, which is 4.9% above the projected quota, so more efforts are needed to manage the channels from distribution agents to public to ensure that 3-kg LPGs reach the intended consumers and within the quota.

PT Pertamina (Persero) as the kerosene-to-LPG-conversion program implementer received this year quota for distribution at 3.61 million MT. Based on the annual quota, the company projects to distribute 1.17 million MT 3-kg LPG for the first quarter of 2012.

"However, the distribution realization for the first quarter of 2012 has reached 1.23 million MT or 4.9% above the projected quota. If this trend continues, it is possible that the 3-kg LPG quota for 2012 will be overshot. We predict the possibility of reaching 3.75 million MT or 3.9% above quota," Pertamina's Direktor for Marketing and Trade, Hanung Budya Yuktyanta, said.

Hanung said the distribution realization for quarter 1 of 2012 could be early indication regarding the misuse of 3-kg LPG. Pertamina is putting effort to rearrange the distribution channel of the subsidized gas to ensure 3-kg LPG is received by rightful members of the public. It is also to prevent illegal mixing that may compromise the safety of the LPG cylinders, considering frequent incidents caused by illegally mixed LPG>

"Rearrangement of distribution channel from agents to consumers. This rearrangement is also to prepare the implementation of close-distribution so that 3-kg LPG will reach intended target, the distribution will be within quota, and the safety of LPG usage can be maintained. From supply side, we ensure that current 3-kg LPG stock is sufficient," Hanung Budya Yuktyanta said.

The rearrangement activity is done through new data collection of the receiving pools and their capability to distribute 3-kg LPG to public. This is done by using the reference data of the pools, which have been registered and recommended by 3-kg LPG agents. The data collection will be followed up by making the control card for 3-kg LPG users so that there is clear assurance for rightful members of public who are entitled to 3-kg LPG allocation.

The allocation and the setting of the Highest Retail Price (Harga Eceran Tertinggi/ HET) of 3-kg LPG are the authority of the Government based on suggestion from local government. The regulation is stipulated in the Joint Regulation of Minister for Home Affairs No. 17/2011 and Minister for Energy and Mineral Resources No. 05/2011.