Government Hints at Possible Non-Subsidised Fuel Price Cut Amid Falling Global Oil Prices

The Ministry of Energy and Mineral Resources (ESDM) has addressed the possibility of lowering the price of non-subsidised fuels, such as Pertamax, in the upcoming period. Director General of Oil and Gas Laode Sulaeman clarified that a recent announcement by Minister Bahlil Lahadalia specifically concerned a fuel policy for fishermen, not a general price reduction for non-subsidised fuels. He noted that while fuels like Pertamax Turbo and Dex series already follow global price movements, discussions on other types have yet to take place.

Minister Bahlil Lahadalia previously stated that the government is formulating a new pricing mechanism to ensure fairness for both the public and business entities. He acknowledged that non-subsidised fuel prices should reflect global crude oil trends, but stressed the need for a balanced approach to avoid burdening consumers. Bahlil confirmed that there would be no increase in subsidised fuel prices and hinted that a price drop is possible for certain non-subsidised fuels if global oil prices continue to fall.

The price of Pertamax was last raised to Rp 16,250 per litre on 10 June 2026, following a spike in crude oil prices due to geopolitical conflict. However, global oil prices have since declined, with Brent crude dropping from highs of US$118 per barrel to around US$68 per barrel in early July 2026. Fuel prices are typically reviewed monthly based on the average crude price, Mean of Platts Singapore (MOPS), and the rupiah exchange rate over the preceding two months.