Global Oil Prices Surge – What About Indonesia's Fuel Prices? Here's What Bahlil Says
Jakarta – Indonesia’s Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has responded to concerns about rising global crude oil prices caused by the escalating conflict between Iran, Israel and the United States.
Bahlil explained that Indonesia’s fuel is divided into two categories: subsidised and non-subsidised. For subsidised fuels such as Pertalite (RON 90) and subsidised diesel, he confirmed that prices will not automatically change despite rising global oil prices.
“Domestic fuel has two types – subsidised and market-based. For subsidised petrol like Pertalite, no matter how much global prices rise, the price remains the same until the government announces a new price adjustment,” Bahlil said during a press conference at the ESDM Ministry in Jakarta on Tuesday, 3 March 2026.
For non-subsidised fuels, price adjustments will continue to follow market mechanisms in accordance with existing regulations, including ESDM Ministerial Regulation Number 22.
“Non-subsidised fuel follows market prices based on regulation 22. For subsidised fuel, unless there is a new government policy, prices will remain the same, including for diesel,” he said.
Iran has announced the closure of the Strait of Hormuz and threatened to shoot down any vessels that attempt to pass through. This escalation followed airstrikes by the United States and Israel on Saturday. The strikes, dubbed Operation Epic Fury by the Trump administration, killed Iran’s Supreme Leader Ayatollah Khamenei.
In response, Iran launched missiles at Israel and Gulf states hosting US military bases, including Qatar, Bahrain, Kuwait, the UAE and Saudi Arabia. Hezbollah, an Iranian-affiliated militia group in Lebanon, also announced it would defend Iran and avenge Khamenei’s death.
According to statements made through Iranian media on Monday local time, the Strait of Hormuz closure and shooting threats were announced by a commander from Iran’s Islamic Revolutionary Guards Corps (IRGC). “The Strait is closed. If anyone attempts to pass through, the heroes of the Revolutionary Guards and regular navy will burn the ships,” said Ebrahim Jabari, a senior advisor to the IRGC’s supreme commander, as reported on Tuesday.
Jabari also threatened to attack oil pipeline routes and warned that crude prices could surge to US$200 per barrel from current levels. “We will also strike oil pipeline routes and will not allow a single drop of oil to leave this region. Oil prices will reach US$200 in the coming days,” Jabari said.
According to Refinitiv data at 12:55 WIB, Brent crude contracts traded at US$80.32 per barrel, up 3.24% from Monday’s close of US$73.20. Meanwhile, West Texas Intermediate (WTI) was recorded at US$72.41 per barrel, up 2.60% from its previous position of US$71.23.
This strengthening extends the upward trend from last week. On 27 February 2026, Brent was still at US$72.48 per barrel and WTI at US$67.02.
This means that over three trading sessions, Brent has strengthened by nearly 10%, whilst WTI has surged more than 8%. During previous intraday trading, Brent even touched levels above US$82 per barrel—the highest since early 2025.
The primary driver of market sentiment comes from escalating Middle Eastern conflict. Expanding air strikes and threats to energy infrastructure and tanker traffic in the Gulf region have increased risk premiums in the oil market.
Market participants remain focused on the potential disruption of supply through the Strait of Hormuz, a passage through which approximately one-fifth of global daily oil supply flows.