Motorcycle Oil Prices Soar, Workshop Owners and Mechanics Protest

The rise in motorcycle oil prices is becoming a major grievance in several workshops. In recent months, oil prices have reportedly surged significantly, forcing workshops to increase oil change tariffs for customers.

Observations at several workshops in the Mampang area, South Jakarta, show that oil prices, which were previously sold including installation services for around Rp60,000 to Rp65,000, have now reached Rp75,000.

Ilyas, a mechanic at a workshop in the area, stated that the increase in oil prices is the most noticeable compared to other components. “People might start curbing their spending because we know the economy is unstable, and on top of that, the price of goods is rising; the increase in oil is particularly felt,” Ilyas told CNBC Indonesia on Friday.

According to him, about three to four months ago, customers could still change their oil including installation services for approximately Rp60,000. However, that amount is now only sufficient to purchase the oil itself. “Usually, three to four months ago, it included the service for just Rp60,000. Now, Rp60,000 is only the price to buy the oil from the shop. I cannot sell it at Rp60,000 because there are service costs to consider. So now, I have set the price at Rp75,000,” he said.

This price hike has left many customers shocked when visiting workshops. “Many protest, asking ‘why did it go up?’ or ‘why is it so expensive?’. I just tell them that the price has risen from the source; whether they want to change the oil or not, even if they check another workshop, the price will be the same,” he added.

He noted that the increase is not limited to a single workshop but is widespread across the market because supplier prices have also risen.

Similarly, Johan, a workshop owner in Mampang, stated that oil prices have risen sharply in recent months. He mentioned that prices previously in the range of Rp50,000 have now averaged around Rp70,000. “People are definitely being more frugal. Since the dollar has risen, oil prices have naturally risen significantly. What used to be Rp50,000 is now around Rp70,000,” Johan said.

According to him, the price increase is ongoing. “It keeps rising. Every month there is an increase in the price of oil itself, as well as for spare parts,” he remarked.

Johan revealed that the oil he sells currently is around Rp70,000 including installation, whereas previously it was at a much lower level of Rp50,000. He believes the surge is linked to the depreciation of the Rupiah against the US Dollar, which affects the price of automotive goods in the market.

Not only oil, but several other vehicle components have also seen price increases. However, according to Johan, the largest increase remains in lubricant-based products. “The biggest is oil and lubricants because they follow global prices. Other things like plastic components, such as drive belts and body parts, have also increased,” he explained.

He estimated that the price increase for various spare parts and lubricants is around 10% to 15%. “Usually it was Rp50,000 and now it is Rp70,000; the increase is around 10 to 15 per cent,” he said.

Despite the rising cost of goods, Johan admitted he has not yet increased service fees, fearing it would further burden customers. “I haven’t increased the service fee yet. If I raise the service fee, people will struggle; it’s already very expensive. If the goods are expensive and the service fee is raised too, it would be a double blow,” Johan said.

Similar sentiments were expressed by Roni, a mechanic at another workshop in Mampang. He noted that the price hike from suppliers leaves workshops with no choice but to adjust selling prices to customers. “Usually, we sell oil including installation for Rp65,000, but now it has become Rp75,000,” Roni said.

He admitted that customers frequently question the price hike. “They are questioning it, saying ‘why did it go up? It was this price yesterday’. But it is impossible for us to buy goods at Rp68,000 and sell them at Rp68,000. We are running a business, so there must be a service fee included,” he concluded.