Experts: Pertamax Price Unchanged Due to Formula Considerations and Price Stability
A number of experts assess that the government and PT Pertamina’s decision to maintain the Pertamax price at Rp16,250 per litre in July 2026 remains in line with economic calculations. Although global oil prices have weakened, the price of non-subsidised fuel is not determined solely by crude oil price movements, but also considers the pricing formula, the rupiah exchange rate, distribution costs, and a strategy to maintain price stability.
Padjadjaran University economist Yayan Satyakti explained that based on his calculation model, the decision to hold the Pertamax price was predictable. He stated the policy is part of a price smoothing strategy that Pertamina has consistently applied. When Pertamax was raised to Rp16,250 in June, the price was actually still below the level implied by the formula because global fuel product prices were very high at the time. Pertamina absorbed the losses then, so now when oil prices fall, the margin is recovered by holding the price rather than lowering it immediately.
Yayan noted that non-subsidised fuel prices do not simply track crude oil price movements. His model, which references the government’s pricing formula and Pertamina’s pricing behaviour, indicated the price would be maintained in July. For August, the basic formula points to a price around Rp13,700 per litre, but with the price smoothing approach, the price is expected to remain around Rp16,000 per litre. He added that if Pertamax were cut directly according to the formula, the impact would be a reduction in inflation of approximately 0.4 percentage points over three months. By maintaining the price, the benefit of weaker global oil prices is instead used to restore Pertamina’s margins, while the burden of subsidising Pertalite and Solar remains a major budget component.
Public policy expert Kristian Widya Wicaksono from Parahyangan Catholic University said the decision to hold the Pertamax price is justifiable as long as it is based on comprehensive calculations and communicated transparently. He emphasised that fuel prices are not set based on crude oil prices on a single day, but also consider average prices over a period, the rupiah exchange rate, refining and distribution costs, taxes, and reserves to anticipate market volatility. As a non-subsidised fuel, Pertamax is not obliged to adjust its price every time global oil prices fall, provided the selling price still reflects the economic cost based on the applicable formula.
Kristian cautioned, however, that if the cost of supply has demonstrably decreased but the price is maintained, the government and Pertamina must provide a transparent explanation to avoid the perception that consumers are bearing an undue burden. He also warned against mixing the non-subsidised fuel pricing mechanism with efforts to cover the state budget deficit, urging openness to maintain public trust. He stressed that successful energy policy is measured not just by cheap or expensive fuel, but by the government’s ability to balance consumer interests, sustainable energy supply, fiscal health, and public confidence in the policy-making process.
Pertamina adjusted several non-subsidised fuel prices effective 1 July 2026. The price of Pertamax was maintained at Rp16,250 per litre following its last adjustment on 10 June. Meanwhile, Pertamax Turbo was reduced to Rp19,300 per litre from Rp20,750, and the price of Pertamax Green 95 was held steady at Rp17,000 per litre.