Global Oil Prices Rise as Bahlil Comments on Indonesia's Fuel Prices

Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia spoke about the rise in global crude oil prices due to the Iran–Israel and United States conflict. At the start of this week, Brent crude surged to around US$81 per barrel, above the Indonesian 2026 budget assumption of US$70. Bahlil explained that domestic fuel in Indonesia is divided into two categories: subsidised and non-subsidised. For subsidised fuels such as Pertalite and subsidised diesel, he assured the price does not automatically change even if world oil prices rise.

‘Domestic fuel comes in two forms, subsidised and those priced in the market. If Pertalite subsidy rises, the price remains the same regardless of changes in world prices,’ Bahlil said at a press conference at the Ministry of ESDM, quoted on Wednesday 4 March 2026.

For non-subsidised fuel, price adjustments follow market mechanisms in line with applicable regulations, including Regulation Minister of Energy and Mineral Resources No. 22. ‘For non-subsidised fuels, prices align with the market price as per Permen 22. If subsidised, unless there is a new policy, prices stay the same including for diesel,’ he added.

As known, Iran announced the closure of the Hormuz Strait. It now also threatens to fire at any vessel attempting to pass. This marks the latest escalation since the US and Israel attacked the country on Saturday. The attack was dubbed ‘Trump Operation Epic Fury’ and killed the country’s Supreme Leader Ayatollah Khamenei. Iran retaliated by firing missiles at Israel and Gulf countries hosting US military bases, such as Qatar, Bahrain, Kuwait, UAE and Saudi Arabia. Hizbollah, Iran’s allied militant group in Lebanon, said it would defend Iran and retaliate for Khamenei’s death.

Quoting Reuters and Al Jazeera, statements were issued through Iran’s website on Monday local time. ‘The Strait is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will burn those ships,’ said Ebrahim Jabari, senior adviser to the IRGC’s supreme commander, published Tuesday (3 March 2026). He also threatened to attack oil pipelines and would not allow a single drop of oil to leave the region. ‘Oil prices will reach US$200 per barrel in the coming days,’ Jabari added.