Rising LPG Prices Push Small Businesses in West Java Back to Firewood
Subang, West Java. Rising liquefied petroleum gas prices are putting pressure on small businesses in Subang, forcing salted fish producers to switch from cooking gas to firewood in an effort to keep operations running.
Traditional furnaces used by salted fish makers in the area are now emitting thick smoke as producers increasingly rely on wood fuel.
Business owners say continuing to use LPG at current prices would erase their margins because market prices for salted fish have not increased.
“If we keep using gas, we make no profit. Now we are forced to use firewood so costs can be reduced, even though it is more troublesome,” said Imam Alfarizi, a salted fish producer in Blanakan district, Subang.
He said using firewood has cut operating costs by as much as 50%, although the smoking and boiling process now takes longer and requires more labor.
Meanwhile, the provincial government of Jakarta has tightened supervision of businesses ranging from hotels and cafes to restaurants to prevent misuse of subsidized liquefied petroleum gas.
Subsidized LPG is sold in 3-kilogram canisters for less than $2.
Jakarta Governor’s spokesperson Chico Hakim said the monitoring effort would involve several government agencies after prices of non-subsidized 12-kg and 5.5-kg LPG cylinders rose sharply.
The price of a 12-kg LPG cylinder in Jakarta increased by Rp36,000 to Rp228,000 ($13.2), while the 5.5-kg cylinder rose by Rp17,000 to Rp107,000 ($6.2) per canister.
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