Ministry of Energy and Mineral Resources: Subsidised fuel prices will not increase, public can celebrate Lebaran peacefully

The government has guaranteed that subsidised fuel prices will not increase ahead of Eid al-Fitr 1446H, despite current fluctuations in global crude oil prices caused by geopolitical conflicts in the Middle East.

“As the Minister of Energy and Mineral Resources has already conveyed on the President’s direction, subsidised fuel prices are guaranteed not to rise. Therefore, the public can carry out Ramadan peacefully and welcome Eid without worry,” stated Dwi Anggia, spokesperson for the Ministry of Energy and Mineral Resources, in Jakarta on Monday.

He said the decision was made despite global crude oil prices increasing significantly compared to the assumed Indonesian Crude Price (ICP) in the state budget, which is around $70 per barrel.

On Monday, citing Kyodo reports, futures crude oil prices briefly exceeded $111 per barrel, reaching the highest level since July 2022 as global geopolitical dynamics continue.

“The government will certainly continue to monitor the situation. The clear focus at present is to ensure that national energy security remains safe so that people can carry out Ramadan and celebrate Eid peacefully,” he said.

The government also appealed to the public not to engage in panic buying, as national fuel stock levels are above the required minimum standards.

According to him, excessive purchasing could potentially disrupt the distribution system, which is otherwise functioning normally.

Dwi stated that government fuel and LPG stocks exceed the minimum operational reserve standard of 21 days.

“As an analogy, it is like having a water tank at home. Water is used daily, but replenishment also occurs daily,” he said.

Sources for replenishing fuel and LPG stocks, he added, could come from domestic production as well as imports from various countries.