Bahlil Explains Fuel Prices Amid Surging Global Oil

Energy and Mineral Resources Minister Bahlil Lahadalia has responded to soaring global crude oil prices that reached USD 115 per barrel on Monday, 9 March 2026, assuring the government will not raise fuel prices in the near term.

Bahlil stated that fuel prices, including those that are subsidised, will be maintained at least until the Hari Raya period. “Until Hari Raya, God willing, there will be no increase in subsidised fuel prices,” said the Golkar Party chairman when met at the Energy and Mineral Resources Ministry office in Jakarta on Monday, 9 March 2026.

According to Bahlil, the government is currently conducting a comprehensive review to determine its next policy steps. This assessment is necessary because rising global oil prices cannot be avoided amid the Iran-Israel conflict, which has received support from the United States. The conflict has triggered concerns about global energy supply and driven oil prices sharply higher on international markets.

Nevertheless, Bahlil claims that the domestic energy supply situation remains secure. The government, he said, faces no problems with oil stock availability.

“The problem we face now is not stocks. Stocks pose no problem; everything is already available. We are now simply dealing with the price issue,” he said.

Global crude oil prices surged sharply in early week following heightened Iran-Israel tensions in the Middle East. According to Trading Economics data for Monday midday, 9 March 2026, West Texas Intermediate (WTI) crude oil futures contracts jumped to USD 115 per barrel. This increase came after prices had previously surged as much as 31 per cent during intraday trading.

The surge represents the largest single-day increase since April 2020 and pushes oil prices to their highest level since June 2022. The price strength also extends the previous week’s rally, which reached 35.6 per cent.

The oil price increase has been driven by a series of supply disruptions from major Middle Eastern producers, particularly following disruptions to energy shipping routes through the Strait of Hormuz. This strait is one of the world’s primary oil distribution routes, so any disruption directly affects global supply balance.

In Iraq, according to Trading Economics records, production from three major oil fields in the southern region has fallen sharply. Oil production has dropped approximately 70 per cent to only 1.3 million barrels per day from the previous 4.3 million barrels per day before the war erupted. This production decline directly tightens oil supply in the global market.

Supply disruptions have also originated from other major Gulf region producers. Kuwait, the world’s fifth-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), began cutting production from Saturday and declared force majeure conditions. Similar steps previously occurred in Qatar’s energy sector after it cut liquefied natural gas (LNG) production last week.

Analysts also forecast potential production declines from the United Arab Emirates and Saudi Arabia. These declines are driven by storage facility capacity reaching full levels, which restricts additional production capacity.