Fuel Prices May Rise, LCGC Becomes an Opportunity

JAKARTA – The conflict in the Middle East region, which has triggered a rise in global oil prices, is beginning to impact several countries, including Indonesia. In fact, domestic fuel prices are reported to potentially undergo adjustment at the beginning of April 2026.

This condition is assessed as capable of affecting public consumption patterns, particularly in choosing more fuel-efficient vehicles.

Sales & Marketing and After Sales Director of PT Honda Prospect Motor (HPM), Yusak Billy, stated that the situation could instead become an opportunity for the low-cost green car (LCGC) segment.

“(The fuel price increase due to the Middle East conflict) could be an opportunity for LCGC because its fuel consumption can reach 20 km per litre (1:20), so LCGC remains popular,” said Billy, when met in North Jakarta on Tuesday (31/3/2026).

Fuel efficiency becomes one of the main factors considered by consumers, especially when fuel prices rise.

With the still challenging economic conditions and the potential for fuel price increases, high-efficiency vehicles are deemed to be increasingly in demand.

Nevertheless, Billy emphasised that interest in LCGC is also influenced by other factors, such as public purchasing power and ease of financing.

“So we continue to coordinate with financing institutions to make it easier for consumers. That has a very significant impact on LCGC, especially for first-time buyers,” he said.

However, with the potential fuel price increase, cars with efficient fuel consumption like LCGC could be reconsidered as a more economical mobility solution.

This condition also opens opportunities for manufacturers to re-optimise strategies in that segment, in line with changes in consumer needs amid global dynamics.