Bahlil: Subsidised fuel prices will not rise even as world oil prices soar
Jakarta — Energy and Mineral Resources Minister Bahlil Lahadalia has assured that the price of subsidised fuel, Pertalite petrol, will not rise, even if world oil prices surge as a result of the conflict between the United States, Israel and Iran. ‘If it is subsidised fuel, Pertalite, whatever the rise in world oil prices, the price will stay the same as before any government intervention,’ Bahlil said during a press conference on the latest developments in the Middle East and implications for the ESDM sector, held at the Ministry of Energy and Mineral Resources, Jakarta, on Tuesday.
Regarding non-subsidised fuels such as Pertamax, prices will indeed adjust, rising in line with fluctuations in world crude prices.
Bahlil said oil prices have risen to around $78-80 per barrel, exceeding the macro assumptions in the 2026 State Budget (APBN), which were $70 per barrel. As a country that imports around 1 million barrels per day, higher world oil prices place a burden on the APBN with the potential for increased energy subsidies borne by the state.
However, Indonesia also stands to gain additional revenue from higher world oil prices from its own production. ‘Indonesia contributes around 600,000 barrels per day. The difference is what we are currently calculating,’ he added. The calculation, Bahlil said, will be conducted carefully because it relates to domestic energy subsidies.
To date, after the National Energy Council meeting, the government has no plan to raise the price of subsidised BBM. ‘As of our meeting just now, there has been no (increase in subsidised BBM), so for now it is safe. Wishing you a good festival and Ramadan—God willing, there will be no increase in subsidised BBM,’ he said.
Earlier on Saturday (28 Feb 2026), the US and Israel launched a series of strikes against several targets in Iran, including the capital Tehran. The attacks were reported to cause damage and civilian casualties. Iran retaliated by launching missiles at Israel and at US military facilities in the region. On Sunday (1 March 2026), US President Donald Trump claimed the death of Iran’s Supreme Leader Ayatollah Ali Khamenei in a joint US-Israel operation. Iranian TV confirmed the death. Iranian media reported the Strait of Hormuz had effectively been closed following the US-Israel strikes, though no formal blockade had been announced. The Strait of Hormuz handles around a fifth of global oil trade and a large volume of LNG exports from Qatar and the UAE. About 20 percent of global daily oil consumption, or around 20 million barrels, passes through that corridor.