Bahlil Pledges Subsidised Fuel Prices Will Not Rise

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has affirmed that the government will keep the price of subsidised fuel (BBM) affordable. Oil prices have been volatile recently due to geopolitical dynamics in the Middle East and Eastern Europe.

“As for the price of subsidised fuel, whatever the price is in the world, we will not raise it,” Bahlil asserted in a statement quoted on Tuesday (15/9).

Although world oil prices have fluctuated beyond the assumptions of the state budget (APBN), Bahlil assured that subsidised fuel prices would not increase in order to protect the public’s purchasing power.

Bahlil said national fuel demand stands at roughly 1.6 million barrels per day, while domestic lifting is around 600,000–610,000 barrels per day.

He also assured that the government is seeking sources of crude oil supply and promoting downstreaming so that more of the added value from resources can be enjoyed domestically and in producing regions.

Bahlil revealed that he accompanied President Prabowo Subianto on a working visit to Russia for a bilateral meeting with the Russian President. Among other things, they negotiated long-term crude oil supply agreements to cover the domestic deficit.