ESDM Still Reviewing Plan to Increase Non-Subsidised Fuel Prices
Energy and Mineral Resources Minister Bahlil Lahadalia stated that the government is still discussing changes to the prices of non-subsidised fuel oil (BBM). He said the discussions also involve private business entities managing fuel stations besides Pertamina.
“Regarding non-subsidised BBM prices, we are conducting discussions. These discussions naturally involve other private entities,” Bahlil said when met at the Ministry of Energy and Mineral Resources office on Monday, 6 April 2026.
Nevertheless, Bahlil did not deny the plan to raise non-subsidised BBM prices. To date, he continued, the government is still seeking a pricing scheme that aligns with economic conditions.
“Up to now, we are arranging and seeking a good and prudent formulation. Clearly, the government fully understands the conditions of society, both for subsidised and non-subsidised,” Bahlil said.
The plan to increase non-subsidised BBM prices has emerged amid the skyrocketing global crude oil prices due to conflicts in the Middle East.
Previously, screenshots circulated on social media containing details of alleged non-subsidised BBM price increases. In the document excerpt, it was stated that BBM prices were estimated to rise significantly in April 2026, in line with the surge in the Market Price Index (HIP). In the document, the HIP for RON 92 petrol was said to rise by around 62.99 percent, while gasoil (diesel) surged up to 91.30 percent.
The circulated details also listed projections for several products. Pertamax was said to rise from Rp 12,300 to Rp 17,850 per litre. Pertamax Green 95 was estimated to rise to Rp 19,150 per litre, and Pertamax Turbo to Rp 19,450 per litre.
Meanwhile, the largest increase occurred in non-subsidised diesel fuel. Pertamina Dex was projected to rise to Rp 23,950 per litre and Dexlite to Rp 23,650 per litre.
“The information on circulating BBM price increase projections cannot be accounted for,” Pertamina Vice President Corporate Communication Muhammad Baron told Tempo via written message on Monday, 30 March 2026.
The government’s strategy to maintain the budget without raising subsidised BBM prices is to burden PT Pertamina (Persero) with the increased provision costs. Finance Minister Purbaya said Pertamina is capable of bearing that burden due to sufficient liquidity.
Moreover, the government continues to pay 70 percent of compensation obligations each month. “It is capable because payments from the government are smooth, so Pertamina’s finances are very good. For the short term, there are no problems,” he said.
In the long term, Purbaya explained, the Ministry of Finance has set aside an additional budget of Rp 90-100 trillion to anticipate increased fuel subsidy needs, particularly for diesel and 3-kilogram LPG.
Based on government calculations, various savings strategies to be implemented are targeted to save the budget by Rp 204.4 trillion. This amount is partly achieved through reallocating ministry and agency spending budgets from non-priority items, such as official travel, meetings, ceremonial activities, and non-operational expenditures, to more productive spending. This effort is targeted to yield savings of Rp 121.2-130.2 trillion.