Government Still Able to Subsidise Fuel; Bahlil: We'll Reconsider After March

Energy and Mineral Resources Minister Bahlil Lahadalia has commented on the surge in crude oil prices, which have exceeded $100 per barrel.

Despite the elevated prices, the Government has no plans to withdraw fuel subsidies as the State Revenue and Expenditure Budget (APBN) remains capable of bearing the costs. However, it is acknowledged that global crude oil prices remain volatile.

“If prices remain around the $100 average, God willing, we are still within budget parameters. We can still manage,” Bahlil said on Tuesday (17 March 2026).

This projection is not without reason, as such prices would maintain the budget deficit at no more than 3 per cent.

The Government is currently designing various scenarios to address potential global energy crises, and after March 2026 there will be follow-up measures regarding crude oil price policy.

“After March we will reconsider. We are not in a position like God to predict everything happening over there (Middle East). What matters is that we can engage in proper planning,” Bahlil said.

Prices will continue to be subsidised by the government as a demonstration of state presence among its citizens, though potential adjustments remain possible.

“Regarding prices, the state will continue to provide subsidies. We will remain present. What the subsidy price will be, we will assess based on political developments,” he added.

Meanwhile, fuel subsidy stocks during Ramadan and Eid 2026 are guaranteed to be secure. The Government maintains full control over fuel availability at present.

“I want to state that until the end of the Eid celebration, and hopefully continuing thereafter, fuel subsidies remain under government control,” Bahlil explained.

Tehran struck oil and gas fields in Sha’jah, United Arab Emirates, on Monday (16 March 2026), forcing operations to suspend.