Non-Subsidised Fuel Prices Rise, Impact on Society Deemed Limited

JAKARTA - The increase in non-subsidised fuel prices effective 18 April 2026 is considered reasonable, in line with global energy crisis pressures and surging world oil prices. This adjustment is even described as a correction to previous policies that did not follow market mechanisms. Energy economist from Universitas Gadjah Mada (UGM), Fahmy Radhi, stated that non-subsidised fuel prices are fundamentally determined by global market dynamics. “I think it’s appropriate. In fact, this serves as a correction to previous policies that did not raise non-subsidised fuel prices. So far, non-subsidised fuel prices, especially RON 92 and above, are indeed determined by market mechanisms in line with economic conditions,” said Fahmy, quoted from Antara on Monday (20/4/2026). Therefore, the previous policy of holding back fuel prices is deemed less appropriate and has now been corrected through the latest adjustment. This policy aligns with the explanation from the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, who emphasised that non-subsidised fuel follows market prices in accordance with regulations. “So, for fuel, the government regulates subsidised fuel, while for industry, according to the 2022 ESDM Ministerial Regulation, it follows market prices,” he said. “The impact on society, in my opinion, is not significant. Because the number of non-subsidised fuel consumers is not as large as Pertalite and solar users. Moreover, non-subsidised fuel is not used for transporting basic needs,” he added. Conversely, the government is holding subsidised fuel prices like Pertalite and solar to maintain economic stability. This policy is considered important for controlling inflation and preserving public purchasing power. “If Pertalite and solar prices are raised, it will definitely trigger inflation and reduce purchasing power. So, the decision to raise non-subsidised fuel while holding subsidised fuel, in my view, is appropriate,” said Fahmy. “Non-subsidised fuel is consumed by the upper class, which does not contribute much to inflation,” said Robert. However, he warned that the potential shift in consumption to subsidised fuel still needs to be anticipated through stricter regulations.