Indonesia will not raise subsidised fuel prices despite rupiah weakening

Jakarta (ANTARA) - Energy and Mineral Resources Minister Bahlil Lahadalia said the government will not raise the prices of subsidised fuels, such as Pertalite and Biosolar, even though Indonesia’s crude price rose and the rupiah weakened. ‘Prices will not rise. Insyaallah, yes, we will not raise (the subsidised fuel prices),’ Bahlil said at the ESDM Ministry Office in Jakarta on Tuesday. He noted that although the average Indonesian crude price for April 2026 was USD 117.31 per barrel, subsidised fuel prices remain stable. He referred to the average Indonesian crude price since January 2026 that has not yet breached USD 100 per barrel. Therefore, Bahlil reiterated that subsidised fuel prices are expected to stay safe through 2026, ‘Insyaallah until the end of the year.’ The ESDM Ministry set the ICP for April 2026 at USD 117.31 per barrel, up USD 15.05 from March 2026’s USD 102.26 per barrel. In addition to geopolitical factors, China’s economy grew 5 percent year-on-year in Q1 2026, providing positive sentiment for global oil demand. Laode added that although global oil prices may still be pressured by geopolitical conditions, there are several factors that could restrain price increases. Those include projections of a global oil demand decline in Q2 2026 by about 5 million barrels per day year-on-year and the potential reopening of diplomatic channels between Iran and the United States.