Government Assures Petrol and Diesel Prices Will Not Increase Until Eid
Government officials have confirmed that subsidised fuel prices will remain stable at least until Eid al-Fitr. Speaking at the Presidential Palace Complex in Jakarta on Tuesday (10 March 2026), an official stated that recent price movements were insufficient to warrant budgetary adjustments, noting that assessments were based on annual projections and the increases had only occurred over a few days.
Energy and Mineral Resources Minister Bahlil Lahadalia reiterated there are no plans to raise subsidised fuel prices through the Eid holiday period. “I can assure you that with regards to subsidised fuel prices until Eid, God willing, there will be no price increases whatsoever. The state is committed to ensuring that even if global crude oil prices rise, subsidised fuel prices will remain unchanged,” Lahadalia stated.
The minister called for the public to refrain from panic buying, emphasising that fuel supplies are adequate. He noted that current reserves are sufficient for 21 to 25 days and are continuously replenished. “I urge and request that there be no panic buying because our fuel stocks are indeed sufficient. The 21 to 25-day figure refers to our storage capacity, but fuel continuously flows in and out. Our industry continues operating normally,” Lahadalia explained.
Commission XI chairman of the House of Representatives, Misbakhun, announced he would hold discussions with the government regarding global oil prices. Global crude prices have recently breached the US$100 per barrel threshold owing to escalating geopolitical tensions in the Middle East.
“We will verify the situation with the government. The current price range is still very moderate,” Misbakhun told journalists at the Stock Exchange building in South Jakarta on Tuesday (10 March 2026).
Misbakhun explained that increases in global oil prices directly impact domestic energy consumption costs, as Indonesia still relies on imports to meet part of its oil requirements. This creates a differential between the price of imported oil and domestically produced oil prices. The differential can generate a surplus depending on the Indonesian Crude Price (ICP).
“This differential sometimes yields a surplus depending on the ICP level. The issue is that the government always has options,” Misbakhun noted.
He further explained that the government operates within certain tolerance thresholds for oil price increases. Should prices exceed these thresholds, the government must implement fiscal policy measures to maintain budgetary stability. “Beyond certain levels, such increases are not tolerated. The government’s options are either to increase subsidy allocations, raise fuel prices, absorb the cost, or increase subsidies. Those are the only choices,” he added.