Bahlil: No Increase in Subsidised Fuel Prices Until Hari Raya

Indonesia’s Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has confirmed that the government has made no decision to increase the price of subsidised fuel. He has called for the public to remain calm ahead of Hari Raya.

The possibility of a fuel price increase has been widely discussed lately as global geopolitical tensions have risen. The conflict between the United States and Israel with Iran has driven surging global oil prices, which have now exceeded $100 per barrel.

Despite tensions in oil-producing regions, Bahlil has assured that domestic energy supply remains secure. He stated that the primary issue at present is the increase in global oil prices.

“Our problem now is not stocks. There are no stock issues; everything is available. We are currently facing a price issue. We are preparing comprehensive measures. But I assure you that until Hari Raya, God willing, there will be no increase in subsidised fuel prices,” Bahlil said in Jakarta on Monday (9 March 2026).

The budget assumption for oil price stands at around $70 per barrel in the State Budget (APBN). Meanwhile, global market prices have far exceeded this figure.

Bahlil stated that the government continues to coordinate across ministries, including with the Ministry of Finance, to respond to these developments. “That will be a matter for the government. There will certainly be communication with the government,” he said.

He added that the government is also mapping several efficiency measures to maintain budget stability. These steps are expected to preserve energy resilience whilst controlling fiscal burden.

One option being considered is accelerating the implementation of biofuels. The government plans to push forward the biodiesel programme from B40 to B50 and accelerate the adoption of E20 ethanol blend for petrol.

“If fossil oil prices can exceed $100 per barrel, then it would be cheaper if we do blending. For diesel from B40 to B50. Or we make it mandatory for petrol and it’s cleaner,” Bahlil said.