Bahlil Guarantees No Increase in Subsidised Fuel and LPG Prices

The government has confirmed that the prices of subsidised fuel and Liquefied Petroleum Gas (LPG) will not change. This step is being taken as a strategic effort to maintain the public’s purchasing power, especially for low-income groups. Minister of Energy and Mineral Resources, Bahlil Lahadalia, stressed that the government currently has no plans to raise the price of state-subsidised energy. He conveyed this to allay public concerns amid adjustments to the prices of several non-subsidised energy products. “We are stating that the prices of subsidised fuel and LPG have not changed at all. That is the main point,” Bahlil told the media at the Presidential Palace on Thursday. Bahlil explained there is a policy difference between subsidised and non-subsidised products. For non-subsidised fuel, prices will continue to be adjusted according to market mechanisms and global price developments. However, he assured that the calculation process is being conducted wisely by business entities, including PT Pertamina (Persero) and private parties. Regarding the impact of non-subsidised price fluctuations, Bahlil mentioned the government is currently formulating various policy instruments to ensure public consumption is maintained. Keeping subsidised prices unchanged is the main instrument for protecting vulnerable communities. “The government is formulating matters related to protecting public purchasing power. Therefore, to protect purchasing power, especially for subsidised fuel, we are not raising it at all,” he stressed. The government is continuously evaluating and coordinating intensively with businesses to monitor the impact of energy prices on the market. Bahlil emphasised that the government’s main focus is to provide protection to lower-income groups through a well-targeted subsidy scheme. “We are exercising all alternatives. What is important is that we look after our brothers and sisters in the lower economic bracket. Users of non-subsidised fuel are those with better economic capacity,” Bahlil concluded.