Tangerang. Energy and Mineral Resources Minister Bahlil Lahadalia announced on Tuesday that retailers are now permitted to sell subsidized 3-kilogram cooking gas (LPG) canisters at a maximum price of Rp 19,000 ($1.16) per unit.

The government heavily subsidizes each 3-kg LPG canister by Rp 36,000, allowing it to be sold below Rp 20,000 to low-income families.

Despite being intended solely for the poor, as stated on the canister, the "melon canisters" have become increasingly popular among households due to their affordability. However, their retail price often soared to Rp 30,000 due to long and inefficient distribution chains.

In an effort to curb price inflation, Bahlil’s ministry recently banned convenience stores and small retailers from selling subsidized LPG, requiring consumers to purchase from authorized distributors instead. However, this move backfired, causing widespread LPG shortages as many consumers struggled to locate the limited number of authorized distributors.

Meanwhile, supplies for non-subsidized 12-kg LPG canisters, priced over Rp 200,000 ($12.25) per unit under market mechanisms, remained unaffected and continued to be available at convenience stores.

“We must protect subsidized LPG prices from skyrocketing. When prices reach Rp 25,000 or even Rp 30,000, our massive subsidies become irrelevant to consumers,” Bahlil said during an inspection at an LPG distributor in Cibodas District, Tangerang, just south of Jakarta.

Following public outcry, Bahlil reversed the retail sales ban and reinstated retail sales of 3-kg LPG canisters to ease access for consumers.

“Retailers can sell 3-kg LPG again, but the price must not exceed Rp 19,000,” he said.

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