Bahlil Proposes Increase in Subsidised Diesel Quota for 2027
Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has proposed that the allocation volume for subsidised diesel be increased next year. Bahlil’s proposal is to raise the subsidy allocation from the original 18.64 million kilolitres (KL) in 2026 to between 18.80 million and 19 million KL in 2027.
“Diesel in 2026 is 18.64 million KL. For 2027, we are allocating 18.80 to 19 million KL,” Bahlil said during a Working Meeting with Commission XII of the Indonesian House of Representatives at the Parliament Complex in Senayan, Jakarta, Monday (15/6/2026).
The realisation of subsidised diesel distribution up to May 2026 stood at 7.77 million KL. In addition to increasing the volume of subsidised diesel, Bahlil also proposed that the volume of subsidised kerosene be increased from the originally allocated 0.53 million KL in the 2026 State Budget (APBN) to between 0.543 million KL and 0.561 million KL. The realisation of subsidised kerosene distribution up to May 2026 was 0.21 million KL.
Overall, Bahlil proposed an increase in the total volume of subsidised fuel from the original 19.17 million KL in 2026 to between 19.343 million KL and 19.561 million KL in the 2027 Draft State Budget (RAPBN).
Meanwhile, for the volume of 3-kilogram LPG, Bahlil did not propose any change to the allocation volume. In other words, the subsidised LPG allocation remains at 8 million metric tonnes for the 2027 RAPBN, unchanged from the 3-kilogram LPG allocation in the 2026 APBN.
Regarding the realisation of subsidised LPG distribution, the Ministry of ESDM noted that 3.56 million metric tonnes had been distributed up to May 2026.
“LPG is roughly the same. We are allocating it at 8 million metric tonnes, the same as 2026,” Bahlil said.
Furthermore, Bahlil also did not propose any changes regarding the fixed subsidy for diesel or GasOil 48 for the 2027 RAPBN. The fixed subsidy allocation for diesel 48 remains at Rp 1,000 per litre.
“Once again, I say that this is the same as what was conveyed by the government led by President Prabowo Subianto, while awaiting geopolitical dynamics,” Bahlil stated.