Purbaya Guarantees No Increase in Subsidised Fuel Prices Despite Global Oil Price Surge

Finance Minister Purbaya Yudhi Sadewa has confirmed that the government will maintain subsidised fuel prices at their current level, despite a renewed increase in global crude oil prices. During a meeting with Pertamina’s President Director, Simon Aloysius Mantiri, at the Ministry of Finance on Friday, 24 July 2026, Purbaya stated there was no discussion regarding a price hike for subsidised fuel. “No. What we are ensuring is that the subsidies are precisely targeted, so that the volume can be controlled,” Purbaya said. He explained that the discussion with Pertamina’s President Director focused solely on the use of technology to ensure the distribution of subsidised fuel and 3 kg LPG is better targeted. “I want to know what technology will be used so that the subsidies are on target,” he stated. Purbaya said the government wants to ensure that subsidised fuel is enjoyed by those entitled to receive it, thereby controlling the distribution volume. He noted that subsidised fuels like Pertalite and 3 kg LPG are still widely used by middle-to-upper-class groups. “For example, all wealthy people can also buy Pertalite or 3 kg gas. Pertamina has the technology, I want to see how the technology works and how it is applied,” Purbaya said. “We will wait for Pertamina to propose something; I will look at other matters later,” he added. The government is currently preparing a new distribution scheme for subsidised fuel to improve targeting, which includes restrictions on the purchase of subsidised Pertalite and diesel, or Biosolar. The restrictions will be based on vehicle type and engine capacity in cubic centimetres. Concurrently, the Ministry of Energy and Mineral Resources is revising Presidential Regulation Number 191 of 2014 concerning the Provision, Distribution, and Retail Selling Price of Fuel. The government is also preparing a transformation of the 3 kg LPG subsidy from a commodity-based scheme to a beneficiary-based scheme, with distribution later referring to data from the Targeting for the Acceleration of Extreme Poverty Elimination and the Integrated Social Welfare Data.