Global Oil Prices Hover Between US$90-US$120 Per Barrel, Airlangga Reveals Government's Various Scenarios

Coordinating Minister for the Economy, Airlangga Hartarto, stated that the movement of global oil prices is currently in the range of US$90 to US$120 per barrel and is still influenced by global conditions. Therefore, the government is preparing various scenarios to maintain stability in the energy sector amid these global oil price dynamics. “It seems the price (of oil) is in the range of US$90 to US$120 per barrel, after which it drops again to around 100,” Airlangga said at the Merdeka Palace Complex in Jakarta on Tuesday night, 5 May 2026. “For fuel oil, we are still monitoring because global oil prices are moving dynamically,” he added. Airlangga explained that these fluctuations are influenced by various factors, including geopolitical tensions that make energy prices difficult to predict. He emphasised that the government is not setting a fixed scenario but preparing flexible policies in line with developments. “The important thing is that we have scenarios to maintain, and these scenarios are dynamic in nature,” Airlangga said. He stated that this approach is necessary so that the government can respond to changes in energy prices quickly and in a measured way. In addition, the government is also continuously monitoring the realisation of energy purchase prices, which do not always follow the highest prices in the global market, as they use average purchase prices. This approach is considered to help keep the energy subsidy burden under control amid global oil price fluctuations. On the fiscal side, the government is also allocating energy subsidies and compensation in the 2026 state budget to maintain people’s purchasing power and economic stability. Furthermore, Airlangga continued, the government is also promoting the strengthening of domestic energy through the implementation of the biodiesel programme and new renewable energy (NRE). “The implementation of B50 on 1 July and the acceleration of the NRE programme are expected to save Rp48 trillion in diesel or solar purchases,” Airlangga said. According to him, the development of alternative energy is an important part of reducing dependence on imported energy. In addition to maintaining prices and supply, the government is also preparing policies to support energy availability, including through adjustments to trade policies. “One of the steps being prepared is the reduction of import duties on LPG imports to maintain domestic energy supply. Some of the steps being prepared include reducing import duties on LPG imports to 0% from 5%,” he said.