Gibran Explains Why Fuel Prices Remain Unchanged Amid Surging Global Oil Prices
Jakarta, CNBC Indonesia - Vice President Gibran Rakabuming has revealed the government’s reasons for not raising fuel prices despite the skyrocketing global oil prices triggered by the war in Iran.
The Vice President acknowledged that proposals to increase fuel prices have come from various parties, including former Vice President Jusuf Kalla. Although the government takes every suggestion seriously, raising fuel prices in the current situation is deemed inappropriate.
“The government appreciates and gives serious attention to various inputs, including from Mr Jusuf Kalla regarding the proposal to raise fuel prices. However, I apologise, but this does not align with President Prabowo’s clear and firm instructions to his team to maintain the stability of subsidised fuel prices so that they remain affordable for the lower strata of society,” Gibran stated in a written statement on Thursday (9/4/2026).
So, how will the government prevent the state budget from ballooning due to subsidising fuel prices?
Gibran emphasised that efficiency and budget reallocation will continue to be implemented so that the impact of rising global oil prices does not disrupt the national economy.
“The government is determined to carry out efficiency and refocusing of the budget to protect the lower strata of society from being burdened by the ripple effects of fuel price increases, such as rises in staple goods prices, transportation costs, etc.”
“In addition, the acceleration of the transition to electric vehicles and renewable energy is also being continuously promoted. Today, the President visited Magelang to inaugurate the Electric Vehicle Assembly Plant, as one form of the government’s seriousness.”
Previously, in an interview with a national media outlet, Jusuf Kalla urged the government to raise fuel prices to prevent energy sector subsidies from swelling. As is known, global oil prices have surged significantly due to the war between Iran and the US-Israel. This geopolitical conflict has triggered an energy crisis in several countries.