RADAR TULUNGAGUNG – Subsidized fuel prices in Indonesia will remain unchanged at least until Eid al-Fitr 2026, despite a sharp surge in global oil prices triggered by escalating tensions in the Middle East.
Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that the government will not increase the price of subsidized fuel products, including Pertalite and diesel, even as international crude oil prices climb above $100 per barrel.
Speaking at the Ministry of Energy and Mineral Resources office in Jakarta on Monday, March 9, 2026, Bahlil assured the public that the government remains committed to protecting consumers from rising fuel costs.
“I want to make sure that people do not need to worry about fuel prices. Until the Eid holiday, God willing, there will be no increase in subsidized fuel prices,” Bahlil said.
The statement comes as global oil markets experience significant volatility following geopolitical tensions involving Iran, the United States, and Israel.
Global Oil Prices Spike Above $100 Per Barrel
International oil prices surged sharply at the start of the week as investors reacted to growing conflict risks in the Middle East.
According to Bloomberg data on Monday, March 9, 2026, at 12:55 p.m. Singapore time, global crude prices jumped past the $100-per-barrel mark during early trading.
Brent crude reportedly surged by around 23.9 percent, reaching approximately $116.1 per barrel.
Meanwhile, West Texas Intermediate (WTI), another major benchmark for global oil prices, climbed even higher. WTI rose by about 25.2 percent, also reaching around $116.1 per barrel.
These figures are significantly higher than the oil price assumption used in Indonesia’s 2026 state budget (APBN), which was set at $70 per barrel.
This means current market prices exceed the government’s macroeconomic assumption by roughly $46 per barrel, creating potential fiscal pressure if the trend continues.
Government Prioritizes Public Protection
Despite the steep increase in global oil prices, Bahlil emphasized that maintaining stable subsidized fuel prices in Indonesia remains a priority for the government.
Subsidized fuel products such as Pertalite and diesel play a crucial role in supporting transportation, logistics, and daily economic activities, particularly for lower-income communities.
A sudden price increase could significantly impact household spending and transportation costs across the country.
Therefore, the government has decided to maintain price stability while closely monitoring global market developments.
Bahlil also noted that authorities are carefully evaluating the implications of rising crude oil prices on the national energy budget.
“We continue to monitor global oil price movements so that state spending can remain efficient,” he explained.
Fuel Supply Remains Safe
In addition to guaranteeing stable prices, the government also reassured the public that national fuel supplies remain sufficient.
Bahlil stated that Indonesia currently has adequate fuel stock levels to meet domestic demand, particularly ahead of the Eid holiday season when travel and fuel consumption typically increase.
The ministry is coordinating with energy stakeholders to ensure distribution runs smoothly across the country.
This includes maintaining adequate reserves and monitoring supply chains to prevent potential disruptions.
As Ramadan approaches and millions of Indonesians prepare for the annual homecoming travel period, fuel demand is expected to rise significantly.
However, authorities say there is no need for panic buying or excessive fuel purchases.
The government continues to emphasize that both supply and distribution remain under control.
Monitoring Global Energy Risks
Even though the government has pledged to maintain subsidized fuel prices in Indonesia, officials acknowledge that global energy markets remain uncertain.
Geopolitical tensions, particularly in the Middle East, could continue influencing crude oil prices in the coming months.
Energy analysts warn that prolonged conflict in the region may sustain high oil prices and potentially strain government subsidies.
For now, however, Indonesia’s energy policy remains focused on protecting consumers while maintaining fiscal discipline.
By closely monitoring global developments and managing state spending efficiently, the government hopes to balance economic stability with energy affordability.
For millions of Indonesians, the assurance that subsidized fuel prices will stay stable until Eid 2026 provides a measure of relief amid rising global economic uncertainty.