Bahlil proposes subsidised diesel volume increase to 19 million KL in 2027

Minister of Energy and Mineral Resources Bahlil Lahadalia has proposed that the allocation volume for subsidised diesel be increased 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 House of Representatives Commission XII at the Parliament Complex in Senayan, Jakarta, on Monday. The actual distribution of subsidised diesel up to May 2026 stood at 7.77 million KL. In addition to the increase in subsidised diesel volume, Bahlil also proposed that the volume of subsidised kerosene be increased from the originally allocated 0.53 million KL in the 2026 State Budget to between 0.543 million KL and 0.561 million KL. The actual distribution of subsidised kerosene up to May 2026 was recorded at 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 for the 2027 Draft State Budget. Meanwhile, for 3-kg LPG volume, Bahlil did not propose any change to the allocation. In other words, the subsidised LPG allocation remains at 8 million metric tonnes for the 2027 Draft State Budget, unchanged from the 3-kg LPG allocation in the 2026 State Budget. Regarding the actual distribution of subsidised LPG, the Ministry of Energy and Mineral Resources recorded 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 Draft State Budget. The fixed subsidy allocation for diesel 48 remains at Rp1,000 per litre. “I reiterate that this is in line with what has been conveyed by the government, led by President Prabowo Subianto, while we await geopolitical dynamics,” Bahlil stated.