Pertalite Fuel Price Guaranteed Not to Rise Until End of Q1 2026
Jakarta — Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has confirmed that subsidised fuel prices will not increase until at least the end of the first quarter of 2026, or by the end of March 2026.
Deputy Energy Minister Yuliot Tanjung stated that the commitment to keep subsidised fuel prices stable, including Pertalite petrol and subsidised diesel, applies through Eid al-Fitr 2026. Energy Minister Bahlil Lahadalia had previously made this assurance. The government continues to monitor global oil price movements.
“The Minister has stated that there will be no price increase for Pertalite through the end of the first quarter of 2026,” Yuliot said at a press conference at the BPH Migas office in Jakarta on 12 March.
The government will conduct an evaluation of global oil price developments and consider subsidy allocations and compensation mechanisms for domestic fuel. “We will discuss with relevant ministries about any necessary adjustments to Pertalite subsidised RON 90,” he added.
Earlier, Energy Minister Bahlil Lahadalia confirmed that the state would increase subsidy budgets from the national budget to cover the gap between actual and assumed crude oil prices. The government has set the Indonesian Crude Price (ICP) assumption in the 2026 budget at $70 per barrel. “The state will respond by increasing subsidy budgets. The current budget assumes an ICP of $70 per barrel, but it has now exceeded $100 per barrel. The difference will still be covered by the state budget. The country can still finance this difference, which will continue to be borne by the state,” Bahlil explained.
The additional state burden is being covered by a “buffer fund” requested by Bahlil from President Prabowo Subianto during a limited meeting. “In that meeting, I spoke with the finance minister about our need to understand what people are facing today. During fasting season and the holidays, I requested that even if global oil prices rise, we must continue to provide subsidies and there should be no increase in subsidised fuel prices,” he emphasised.
According to Refinitiv data, Brent crude oil was trading at $110.02 per barrel on Thursday at 11:31 WIB, up 8.7%. Meanwhile, WTI crude was at $94.21 per barrel, also up 8%. The surge extended gains from Wednesday when Brent rose 4.7% and WTI climbed 4.6%.
Oil prices have spiked following warnings from the Iranian government that global prices could reach $200 per barrel amid escalating conflict and disruptions to international energy distribution routes. The warning came after Iranian forces reportedly attacked commercial vessels in the Persian Gulf on 11 March. The International Energy Agency (IEA) has agreed to release up to 400 million barrels from strategic reserves to mitigate the energy supply shock, described as among the worst since the 1970s oil crisis.
The United States will be the largest contributor, releasing 172 million barrels from its Strategic Petroleum Reserve beginning next week. Japan has also announced it will release approximately 80 million barrels from national and private reserves to help stabilise global energy markets.