Since Feb. 1, 2025, the government has officially prohibited the sale of subsidized 3-kilogram Liquefied Petroleum Gas (LPG) canisters at retailers. The 3-kg gas may only be sold at Pertamina’s official distribution points.
Retailers wishing to continue selling the subsidized LPG must change their status to a distribution point or Pertamina’s official distributor, with a one-month deadline.
UGM economist Dr. Fahmy Radhi criticized Minister of Energy and Mineral Resources Bahlil Lahadalia’s policy, calling it a blunder.
On the contrary, the policy could harm small traders by making it more difficult for consumers to obtain the LPG, which goes against President Prabowo’s commitment to support small people.
“Retailers have been small traders and small shops earning a living by selling the 3-kg LPG. The ban on retailers selling it will put them out of business,” he said at the UGM campus on Feb. 3, 2025.
As a result of the ban, grassroots entrepreneurs lose their income. They revert to unemployment and fall back into poverty.
These small businesses can’t change their status to a distribution point or official Pertamina distributor, as purchasing 3-kg LPG canisters in bulk requires a substantial investment.
“This policy is also troublesome for consumers, most of whom are poor, as they will have to travel far to buy the subsidized LPG at distribution points,” he explained.
Dr. Radhi reiterated that the ban goes against President Prabowo’s commitment to supporting low-income people, both grassroots entrepreneurs and consumers, the majority of whom are impoverished.
This policy harms grassroots traders and must be revoked as it burdens the poor.
“The policy to ban retailers from selling 3-kg LPG must be canceled. Prabowo must reprimand Bahlil for this blunder so that similar policies do not happen again,” he urged.
Author: Agung Nugroho
Post-editor: Lintang
Photo: Harian Jogja