Strait of Hormuz Tensions Mount as Oil Prices Rise, Bahlil Guarantees Subsidised Fuel Prices Will Not Change
JAKARTA — Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia said subsidised fuel prices will remain safe amid global volatility stemming from the Middle East conflict. ‘If the price of subsidised fuels, such as Pertalite petrol, goes up whatever the world oil price is, it will stay the same before any government change,’ Bahlil said at a press conference on the Latest Developments in the Middle East and Implications for the ESDM Sector at the Ministry of ESDM, Jakarta, on Tuesday (3 March 2026).
At present, subsidised BBM is Rp 10,000 per litre for Pertalite and Rp 6,800 per litre for Biosolar.
Bahlil said that oil prices had risen to around US$78-80 per barrel, exceeding the macro assumption in the 2026 state budget (APBN), which was US$70 per barrel. As a country that imports around 1 million barrels per day, the rise in world oil prices would burden the Budget with the potential for a widening of energy subsidies borne by the state.
However, Indonesia also gains additional revenue from higher oil prices due to domestic production. ‘Because Indonesia contributes around 600,000 barrels per day, the difference is what we are calculating,’ said Bahlil.
He added that the calculations would be carried out carefully given the domestic energy subsidy framework.
According to him, the government does not plan to raise prices for subsidised BBM. ‘Until we meet in the National Energy Council meeting earlier, there has been no increase in subsidised BBM prices, so it is safe and fine. Happy Eid and good fasting season, God willing there will be no increase in BBM prices,’ Bahlil asserted.
Bahlil explained that Indonesia’s BBM pricing is split into two categories, subsidised and non-subsidised. For subsidised BBM such as Pertalite, prices will not change even if global oil prices rise, as long as there is no official government decision. ‘If the price is subsidised, petrol Pertalite, it will not rise no matter how high the world price goes, before any government change,’ he said.
In short, fluctuations in global crude oil prices do not automatically affect subsidised BBM prices.