Govt reviewing non-subsidized fuel price adjustment, avtur remains competitive

By Cepi Setiadi

Energy and Mineral Resources Minister Bahlil Lahadalia said the government is reviewing a potential adjustment to non-subsidized fuel prices, with discussions involving both public authorities and private sector players.

“We are still in discussions. This process involves private business entities, and we are working to find a sound and prudent formulation. Please wait until the process is completed, and I will update you,” Bahlil told reporters at the ministry’s office on Monday.

He stressed that the government is carefully considering current socio-economic conditions in assessing any changes to fuel pricing, covering both subsidized and non-subsidized categories.

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Regarding aviation fuel, or avtur, Bahlil said the government is continuing internal deliberations to determine the appropriate policy direction.

“We are holding meetings to carry out an exercise,” he said.

He added that avtur prices are largely determined by global market mechanisms, as the fuel is also used for international flights.

“Avtur prices follow the market. However, compared to other countries, particularly in the region, our prices remain more competitive,” he noted.

The review comes amid mounting pressure on the government to raise fuel prices following the closure of the Strait of Hormuz, which has driven a surge in global oil prices.

Editing by Reiner Simanjuntak