Bahlil Guarantees Subsidised Fuel and 3kg LPG Prices Will Not Rise Until End of 2026

Jakarta - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has guaranteed that the prices of subsidised fuels (BBM) and 3-kilogramme (kg) Liquefied Petroleum Gas (LPG) will not increase until the end of 2026. This is to maintain economic stability and the public’s purchasing power amid global geopolitical turbulence.

Bahlil stated that the government is protecting the lower-income population from fluctuations in global energy prices. He noted that the State Budget (APBN) is still capable of supporting the subsidy burden even if Indonesia’s Crude Price (ICP) is at a high level.

“Even until 31 December (2026), if the ICP price is US$100 (per barrel), insyaallah the prices of subsidised BBM and LPG will not rise,” he said at the IPB Alumni Synergy for the Nation event on Saturday (2/4/2026).

Bahlil explained that the certainty of LPG and subsidised BBM prices is a direct order from President Prabowo Subianto. The government will continue to monitor the availability of national energy stocks to ensure services to the public are not disrupted by international market dynamics.

“I reiterate that for BBM, insyaallah there will be no increase for subsidised BBM, including LPG. We will safeguard it, and that is the order from the President, Mr Prabowo,” he elaborated.

Nevertheless, a different policy will be applied to non-subsidised energy products consumed by affluent segments of society. For that segment, the government will allow prices to follow market mechanisms dynamically in accordance with prevailing regulations.

“But for BBM for those who can afford it, apologies, it will follow market laws for those who are able. What we are safeguarding are our brothers and sisters who truly need the government’s helping hand,” he explained.

The government records that the energy subsidy burden, particularly for LPG, remains a challenge as the annual expenditure reaches Rp137 trillion. From that amount, the state must allocate subsidy funds of Rp80-87 trillion to keep 3kg LPG prices affordable.

“Alhamdulillah, Indonesia can still maintain the availability of BBM and LPG. Our crude stock for the next year, insyaallah, is already secured. That is why JP Morgan ranks us number two in the world,” he emphasised.