Government Ensures Subsidised Fuel Prices Do Not Rise, Even as Global Oil Prices Jump

JAKARTA — The government has confirmed there will be no increase in the prices of subsidised fuels in the near term, despite geopolitical tensions in the Middle East causing volatility in global crude prices. The subsidised fuels referred to are Pertalite and Biosolar (subsidised diesel). Currently, Pertalite is priced at Rp 10,000 per litre, while Biosolar is Rp 6,800 per litre. Energy and Mineral Resources Minister Bahlil Lahadalia stated that prices of subsidised fuels will not be changed at least until the Idul Fitri holidays. However, for non-subsidised fuels, such as Pertamax and others, he explained that price adjustments will continue to follow market mechanisms in accordance with Ministerial Regulation ESDM No. 11 of 2022. Regarding energy availability, he promised that stockpiles of fuels and LP gas will be safe to meet the public’s needs ahead of Idul Fitri. “We have anticipated that our fuel stock in the run-up to Hari Raya Idul Fitri is, Insha’Allah, all safe, including LPG. So there is no need for doubt even though there are global dynamics in Iran and Israel,” he said. The global turmoil is driven by the intensification of the conflict in the Middle East involving Israel, the United States, and Iran. This situation has triggered fluctuations in world crude prices. Brent crude futures are currently at around USD 83.62 per barrel, well above the 2026 State Budget assumption for Indonesia’s crude price (ICP) of USD 70 per barrel.