Govt plans further adjustment to non-subsidized fuel prices
Tuesday, May 5 2026 - 07:43 AM WIB
By Calvin Purba
The Indonesian government plans to make another adjustment to non-subsidized fuel prices due to the prolonged conflict in the Middle East.
“I believe the Minister already announced yesterday that there will be another adjustment for non-subsidized fuel,” said Laode Sulaeman, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (MEMR), on Monday (May 4).
Regarding concerns over diesel prices burdening the industrial sector, Laode emphasized that the current priority is ensuring adequate fuel stock.
“Given the current geopolitical conditions, which are unstable and fluctuate, our main priority is to maintain a secure fuel stock. That’s the most important thing for now,” he said.
He stressed that prices for subsidized fuel will remain unchanged in line with previously established policy.
In mid-April, state-owned energy firm PT Pertamina (Persero) raised prices for several non-subsidized fuel products, including Pertamax Turbo, Dexlite and Pertamina Dex, and implemented further increases on May 4.
Read also: Govt signals higher prices for non-subsidized fuel, discussions nearing completion
Pertamina said the adjustments follow the government’s fuel pricing formula, as stipulated in Energy and Mineral Resources Ministerial Decree No. 245.K/MG.01/MEM.M/2022, which governs retail fuel prices at public filling stations.
Meanwhile, for subsidized fuel, the government stated it would maintain current prices through the end of 2026, citing sufficient fiscal capacity despite potential pressure from rising global oil prices.
Finance Minister Purbaya Yudhi Sadewa said the government will continue allocating fuel subsidies in the state budget and has no plans to remove them.
“With regard to subsidized fuel prices, the subsidy will not be removed and will remain in place until the end of 2026,” he said during a press conference in Jakarta on Monday.
The government has modeled scenarios including crude oil prices averaging $100 per barrel and expects to keep the fiscal deficit at around 2.9% of gross domestic product through spending efficiency measures.
Editing by Reiner Simanjuntak