Indonesian Political, Business & Finance News

LPG Price Hike Squeezes Middle Class: No Access to Subsidies, Can't Afford Market Prices

| | Source: KOMPAS Translated from Indonesian | Economy
LPG Price Hike Squeezes Middle Class: No Access to Subsidies, Can't Afford Market Prices
Image: KOMPAS

JAKARTA, KOMPAS.com – The rise in non-subsidised LPG (elpiji) prices amid surging fuel (BBM) and other essential commodity costs has become a new burden for the public, particularly the middle class. They feel squeezed because they are not eligible for subsidised gas but struggle to keep up with continuously increasing market prices. This situation is felt by residents following the simultaneous increase in non-subsidised LPG prices alongside the rising costs of non-subsidised fuels such as Pertamax Dex and Pertamax Turbo, as well as food items in the market. The situation is seen to trigger a domino effect on household expenditures. For context, the price of non-subsidised 12-kilogram (kg) LPG gas has risen from Rp 192,000 to Rp 228,000. “I just found out the price has gone up; it’s quite a bit, Rp 40,000, right? The increase is noticeable,” said Michael to Kompas.com on Sunday (19/4/2026). Nevertheless, Michael said he had anticipated this price surge as a consequence of the escalating geopolitical conflict between Iran and the United States that shows no sign of abating. “Actually, I expected it, because it follows the price of airline tickets which depend on avtur. Then the new prices for Pertamax Dex and Pertamax Turbo have risen so much, so gas is sure to follow,” he stated. Meanwhile, Pudji (50), who has been using non-subsidised gas for three decades, views the gas price increase as occurring alongside fuels and kitchen essentials amid a sluggish economic condition. “If it’s like this, it’s heavy, right? Expenditures balloon, it’s difficult, everything has to be economised on gas,” Pudji complained. “Those using 12 kg are capable, but not crazy rich. There are many in the middle class; not poor, but not rich either, so we’re shocked when it rises,” said Lydia. She explained that in her residential complex, residents are required to use Bright Gas, which is relatively more expensive than subsidised gas. “Last time I bought it for Rp 200,000; how much more now? I really want to go back to 3 kg. But in my place in Cikarang, it’s hard to get. On one hand, I understand there’s a crisis, but don’t burden the people too,” she lamented.

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