Mataram. State-owned energy company Pertamina revealed on Wednesday that several hotels and upscale restaurants have been using subsidized liquefied petroleum gas (LPG) despite government restrictions.

Under existing regulations, 3-kilogram LPG canisters are strictly reserved for low-income households and micro, small, and medium enterprises (MSMEs), said Ahad Rahedi, a spokesman for the company’s sales arm Pertamina Patra Niaga in the eastern region.

Following these findings, Pertamina has launched an internal investigation and vowed to take stern measures against distributors that have supplied subsidized LPG to large businesses.

“The regulations clearly state that the subsidized 3-kg LPG is intended for the poor and MSMEs. It is highly inappropriate for hotels, restaurants, cafes, and other large businesses to use subsidized LPG given their financial capacity,” Ahad said in Mataram, West Nusa Tenggara. He did not disclose the names of the corporate offenders.

He added that such misuse has significant consequences, not only increasing the government’s subsidy burden but also reducing access to affordable LPG for those who genuinely need it.

To prevent further misuse, Pertamina Patra Niaga will tighten oversight of authorized distributors through unannounced inspections and sanctions against violators to ensure that subsidized LPG reaches the rightful beneficiaries.

Currently, 3-kg LPG canisters are priced at Rp 19,000 ($1.16) at the distributor level but can reach Rp 30,000 at retail stores. Despite this, it remains significantly cheaper than non-subsidized LPG, which costs over Rp 200,000 ($12.27) for a 12-kg canister.

Public Outcry Over LPG Shortages
Earlier this week, the widely sought-after 3-kg LPG canisters, commonly known as “melon canisters,” vanished from convenience stores and small retailers, sparking public outrage and criticism against the government.

Energy and Mineral Resources Minister Bahlil Lahadalia denied any LPG shortages, attributing the disruptions to a new distribution scheme.

To maintain affordable prices, the government banned unregistered retailers from selling 3-kg LPG, citing concerns that some had inflated prices. As a result, consumers were forced to purchase LPG only from authorized distributors.

However, the sudden absence of 3-kg LPG in convenience stores and local shops led to panic and confusion among consumers. In response to growing pressure, Bahlil reversed the decision, allowing regular shops to resume selling the product.