Pertamina Raises Fuel Prices; Bahlil Says Market Forces at Play
Pertamina Raises Fuel Prices; Bahlil Says Market Forces at Play
Magelang, C. Java. Energy and Mineral Resources Minister Bahlil Lahadalia defends Pertamina’s decision to raise non-subsidized fuel prices, saying the adjustments follow market mechanisms tied to global oil prices and currency movements.
“Fuel that is regulated by the government is subsidized fuel. Meanwhile, non-subsidized fuel follows market prices in accordance with the 2022 ministerial regulation,” Bahlil said after a leadership retreat for regional legislative councils at the Military Academy in Magelang.
He added that high-quality fuels such as Pertamax Turbo, which has a Research Octane Number (RON) of 98, as well as diesel with higher cetane numbers, are typically consumed by higher-income groups and therefore fall outside the subsidy scheme.
The latest price adjustments reflect fluctuations in global crude oil prices and the rupiah’s exchange rate against the US dollar, prompting Pertamina to review retail fuel prices periodically.
As of Saturday, the price of Pertamax Turbo rose to Rp 19,400 ($1.13) per liter, up Rp 6,300 from its previous level.
Other non-subsidized fuels also saw steep increases. Dexlite recorded the sharpest hike, surging by around 66% to Rp 23,600 per liter from Rp 14,200. Pertamina Dex rose to Rp 23,900 per liter from Rp 14,500.
Meanwhile, prices for Pertamax remained unchanged at Rp 12,300 per liter, and Pertamax Green 95 held steady at Rp 12,900 per liter.
The new pricing applies to regions such as Jakarta and Banten, with variations in other areas depending on local taxes and distribution costs.
Beyond fuel pricing, Bahlil also highlighted Indonesia’s upstream oil and gas potential, noting that exploration activities depend on the government’s tender system for oil and gas blocks.
“Exploration can only proceed after companies participate in and win a block tender,” he said.
The government is continuing efforts to boost investment in upstream oil and gas to strengthen national energy security. Officials expect that aligning non-subsidized fuel prices with market dynamics, alongside increased exploration activity, will help maintain energy stability while attracting investors to Indonesia’s energy sector.
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