RADAR TULUNGAGUNG – Indonesia subsidized fuel prices will remain unchanged until the Eid al-Fitr 2026 holiday despite a sharp rise in global crude oil prices triggered by geopolitical tensions in the Middle East.
Energy and Mineral Resources Minister Bahlil Lahadalia assured the public that the government has no plan to increase the price of subsidized fuel in the near future. He said the decision aims to protect households from the impact of global energy market volatility.
Bahlil delivered the statement as global oil prices surged past $100 per barrel following escalating tensions involving the United States, Israel, and Iran. Despite the global trend, the government pledged to keep Indonesia subsidized fuel prices stable for the public.
“I want to make sure people do not worry about fuel prices. Until the Eid holiday, God willing, there will be no increase in subsidized fuel prices,” Bahlil said during a media briefing.
The assurance comes as energy markets face uncertainty due to geopolitical conflicts that threaten global oil supply chains.
Government Prepares Energy Policy to Reduce Oil Dependence
Although Indonesia subsidized fuel prices remain stable for now, the government is preparing several long-term policies to reduce dependence on imported fossil fuels.
Bahlil explained that the ministry is accelerating the implementation of alternative fuel programs. One of the main strategies involves expanding the use of biofuel blends.
The government plans to speed up the adoption of B50 biodiesel and E20 ethanol fuel. These programs aim to reduce reliance on crude oil imports and strengthen national energy resilience.
The biodiesel program blends palm oil-based fuel with diesel, while E20 mixes gasoline with 20 percent ethanol.
According to Bahlil, these initiatives will help stabilize domestic energy supply while reducing exposure to global oil price fluctuations.
In addition, the government continues promoting the transition to electric vehicles as part of a broader energy transformation.
Authorities expect this policy to gradually reduce gasoline consumption in the long term.
National Fuel Supply Remains Secure
Besides guaranteeing price stability, the government also reassured the public about the availability of fuel supplies.
Bahlil said the national fuel stock remains sufficient, including supplies distributed through state-owned energy company Pertamina.
He stressed that fuel availability will remain safe during the Ramadan fasting month and the Eid holiday period when fuel consumption usually increases due to massive travel activity.
“Fuel supply will not be a problem during Ramadan and Eid. Our supply remains secure,” he said.
Officials continue coordinating with energy stakeholders to ensure smooth distribution across the country.
Stable supply chains will play a crucial role in maintaining economic stability and preventing panic buying among consumers.
Parliament Says Government Has Experience Handling Oil Shocks
Meanwhile, a member of the House of Representatives Commission VI, Herman Khaeron, expressed confidence that the government can manage the current oil price surge.
He pointed out that Indonesia has faced similar challenges in the past when international oil prices increased sharply due to geopolitical conflicts.
Herman recalled the policy measures taken during the administration of former president Susilo Bambang Yudhoyono when oil prices surged globally.
According to him, the experience demonstrated that the government can design careful energy policies without placing excessive financial burdens on the public.
“We believe the government already has strategies to deal with this situation,” Herman said.
He added that the current oil price volatility will not disrupt national fuel supply because authorities have prepared alternative sources of crude oil imports.
Indonesia can obtain additional supply from several countries, including the United States, if necessary.
Global Conflict Drives Oil Market Uncertainty
The spike in global oil prices has largely resulted from rising geopolitical tensions in the Middle East.
Conflicts involving the United States, Israel, and Iran have increased fears of supply disruptions from major oil-producing regions.
Energy markets remain sensitive to developments in the region because it hosts several key oil exporters.
Any escalation in the conflict could push crude prices even higher.
Despite the uncertainty, the Indonesian government continues to prioritize stability in domestic energy prices.
For millions of consumers, the assurance that Indonesia subsidized fuel prices will remain stable until Eid 2026 provides relief amid rising global economic uncertainty.
Officials say they will keep monitoring international oil market developments while maintaining policies that protect public purchasing power and support national economic stability.