Subsidised Fuel Prices Will Not Increase Until Eid al-Fitr

Jakarta — Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia has confirmed that subsidised fuel prices will not increase at least until the conclusion of Eid al-Fitr celebrations, even as global energy commodity prices surge amid heightened geopolitical tensions.

Despite rising international energy prices, the minister stated that the government can ensure prices to consumers will remain stable. “There will be no increase in fuel prices until Eid al-Fitr,” he said during the Ministry of Energy and Mineral Resources podcast Buka Abuleke on 12 March 2026.

Lahadalia emphasised that the state will increase subsidy allocations from the national budget to cover the gap between rising international prices and the budgeted assumptions. He noted that the government had originally calculated crude oil prices at USD 70 per barrel for the current year’s budget, but prices have now exceeded USD 100 per barrel. “The government will absorb this price difference through the state budget,” he added.

The additional fiscal burden will be financed using a “buffer fund” that Lahadalia had previously requested from President Prabowo Subianto during a limited cabinet meeting. During discussions with the Finance Minister, Lahadalia stressed the importance of understanding the challenges facing citizens during the fasting month and Eid celebrations. “I have requested that even if international oil prices continue to rise, subsidies must remain in place and subsidised fuel prices must not increase,” he concluded.