Bahlil: National Fuel Stock Secure, No Need for Panic Buying
The government is moving swiftly to quell public anxiety over soaring crude oil prices triggered by conflict in the Gulf region. Energy and Mineral Resources Minister Bahlil Lahadalia has provided assurance that subsidised fuel prices will not increase at least until Eid al-Fitr 1447 Hijriah.
This certainty emerged after the government coordinated across ministries to respond to global dynamics, including threats by Iran’s military to close access through the Strait of Hormuz, which had raised concerns about disruption to global energy supply chains.
Bahlil urged the public not to engage in panic buying or reckless hoarding of fuel. He stressed that national fuel stock reserves are currently in very safe condition, with storage duration ranging between 21 and 25 days.
“I advise and request that there be no panic buying because our fuel stock is indeed sufficient. So, what is meant by 21 to 25 days is our storage, but it comes and goes, our industry continues to operate, and our imports have no problems,” Bahlil said as reported by Antara on Tuesday (10 March).
The former Investment Minister also explained that Middle East disruptions do not have a directly extreme impact on fuel supply in Indonesia.
According to him, Indonesia only imports crude oil from the region, whilst for finished fuel products, supply comes from domestic production and imports from Southeast Asian countries.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa assured that state budget still has sufficient room to absorb price differentials resulting from surging crude oil that briefly exceeded US$100 per barrel.
Purbaya explained that the average crude oil price assumption in the state budget stands at US$70 per barrel. Although sharp increases are currently occurring, the duration of the price rise, which has only lasted several days, is not expected to significantly shake the annual budget position.
“We remain safe, we remain strong. This has only been rising for a few days, whilst our subsidy calculation covers a full year. So, it is not enough to change our budget. We can still absorb it,” Purbaya concluded.
With assurances from these two key ministers, the government ensures state presence to maintain the stability of public purchasing power, particularly ahead of the Ramadan and Eid Al-Fitr period, which is typically accompanied by increased national energy consumption.