Experts Deem Rise in Non-Subsidised Fuel Prices Reasonable Amid Crisis

Surabaya - An energy economics expert from Universitas Gadjah Mada (UGM), Fahmy Radhi, considers the increase in non-subsidised fuel (BBM) prices starting 18 April 2026 a reasonable step as a correction to previous policies amid the global energy crisis. “I think it is appropriate. In fact, this serves as a correction to the previous policy that did not raise non-subsidised BBM prices. So far, non-subsidised BBM prices, especially RON 92 and above, have indeed been determined by market mechanisms in line with economic conditions,” Fahmy stated in a comment received in Surabaya, East Java, on Monday. He explained that the price increase should follow global oil price movements. When global oil prices rise, non-subsidised BBM prices should also increase accordingly, although not always proportionally. According to Fahmy, the previous policy of not raising non-subsidised BBM prices was an inappropriate step, and it is now being corrected through the mid-April 2026 price adjustment. He also assessed that the impact of this increase on society is relatively small because consumption of non-subsidised BBM is not as large as subsidised BBM and is not used for distributing essential needs. “The influence on society, in my opinion, is not significant. Because the number of non-subsidised BBM consumers is not as large as Pertalite and Solar users. Moreover, non-subsidised BBM is not used for transporting essential goods,” he said. Fahmy added that the government’s policy of holding subsidised BBM prices such as Pertalite and Solar is the right step to maintain economic stability and people’s purchasing power. “If Pertalite and Solar prices were raised, it would definitely trigger inflation and reduce purchasing power. So, the decision to raise non-subsidised BBM while holding subsidised BBM prices is, in my view, appropriate,” Fahmy stated. Regarding the potential shift in consumption, he considered the risk small because users of non-subsidised BBM generally do not easily switch to lower-octane BBM, especially due to vehicle engine performance considerations. “The risk certainly exists, but it is small. Because non-subsidised BBM users are generally private car owners, even luxury cars. They do not immediately switch to subsidised BBM because it could affect the vehicle engine. Moreover, Pertamax and Pertamax Green prices are not increasing,” he said. In agreement, an economics expert from Universitas Negeri Manado (Unima), Robert Winerungan, supports the government’s policy of raising non-subsidised BBM prices while holding subsidised BBM prices to maintain inflation and people’s purchasing power. “Non-subsidised BBM is consumed by the upper class, which does not contribute much to inflation,” he said. Robert also assessed that fuel prices in Indonesia are still relatively cheap compared to several other countries, especially for subsidised BBM like Pertalite and Solar. Nevertheless, he reminded the government to anticipate the potential shift in consumption to subsidised BBM through stricter restrictions, including for certain vehicles. “There needs to be regulations, for example, vehicles priced above Rp500 million should not consume subsidised BBM. Do not let anyone exploit this policy for personal gain,” Robert stated. He added that the government must ensure the supply of subsidised BBM remains secure to avoid shortages and long queues in the field, while also encouraging people to use energy more efficiently. According to the MyPertamina website, several non-subsidised BBM prices have experienced significant increases starting 18 April 2026, including Pertamax Turbo at Rp19,400 per litre from previously Rp13,100, Dexlite at Rp23,600 from Rp14,200, and Pertamina Dex at Rp23,900 from Rp14,500. Meanwhile, prices for some types of BBM such as Pertamax (Research Octane Number/RON 92) remain at Rp12,300 per litre and Pertamax Green 95 at Rp12,900 per litre as an effort to maintain people’s purchasing power amid global pressures.