RADAR TULUNGAGUNG – The sharp increase in motor oil prices in Surabaya has begun affecting local automotive workshops, with business owners reporting declining sales as lubricant costs surged by up to 15% over the past month. The oil price hike, which also pushed spare part prices higher, is believed to be linked to the weakening rupiah against the US dollar and escalating tensions in the Middle East.
Automotive workshop operators across Surabaya said customers have started reducing routine maintenance spending due to rising service costs. Several workshop owners reported that both oil and spare part prices have increased gradually since last month, creating additional pressure on small and medium-sized repair businesses.
One workshop owner explained that nearly all major oil brands had raised prices within weeks. The increase, he said, was significant enough to directly impact consumer purchasing behavior and reduce daily transaction volumes.
Oil Price Hike Hits Workshops Across Surabaya
The oil price hike has become a growing concern among workshop businesses in Surabaya, one of Indonesia’s largest automotive markets. According to workshop operators, the increase has affected almost every type of lubricant product sold in the city.
Prices for several oil products reportedly rose between 5% and 15%, while spare part prices increased by around 5% to 10%. Business owners said the adjustments happened gradually over the last month, forcing them to either absorb some of the higher costs or pass them on to customers.
A workshop operator interviewed in the report stated that the price increase applied to “all brands” of oil products available in the market. He added that spare parts also experienced price adjustments during the same period.
The increase has already reduced customer traffic at repair shops. Workshop owners said many motorcycle and car owners are postponing regular servicing or choosing cheaper maintenance alternatives to cope with rising living expenses.
One seller noted that oil products previously priced around Rp55,000 had climbed to approximately Rp75,000, reflecting a steep jump within a relatively short period.
Weak Rupiah and Middle East Conflict Blamed for Rising Costs
Industry players suspect the oil price hike is closely tied to external economic pressures, particularly the depreciation of the rupiah against the US dollar. Since many automotive lubricants and spare parts rely on imported raw materials or overseas supply chains, fluctuations in global currency markets can directly affect domestic pricing.
Business owners also pointed to geopolitical instability in the Middle East as a contributing factor. Concerns over regional conflict have increased uncertainty in global energy and logistics markets, potentially affecting transportation and production costs linked to automotive products.
The combination of currency pressure and international instability has created a difficult environment for Indonesia’s automotive aftermarket industry. Small workshop operators, who depend heavily on daily consumer spending, are among the first to feel the impact when prices rise sharply.
The gradual nature of the increases has also complicated business planning. Several workshop owners said suppliers adjusted prices in stages rather than through a single major increase, making it harder to predict inventory costs and maintain stable profit margins.
Consumers Reduce Spending as Workshop Revenue Declines
The oil price hike has not only affected workshop operations but also consumer behavior. Repair shop owners said customers are becoming more selective about vehicle maintenance, especially for non-urgent servicing.
Some businesses reported noticeable declines in sales turnover as fewer customers purchased premium oil products or additional spare parts. Operators fear that prolonged price increases could weaken the automotive service sector further if consumer purchasing power continues to decline.
The situation highlights broader concerns over inflationary pressure in Indonesia’s retail and service industries. Rising operational costs, combined with global economic uncertainty, are increasingly being felt by small businesses that rely on stable consumer demand.
Despite the challenges, workshop owners hope market conditions will stabilize in the coming months. Many are closely monitoring exchange rate movements and global developments, particularly in the Middle East, which they believe could continue influencing product prices.
For now, the oil price hike remains a major concern for Surabaya’s automotive sector, with workshop operators warning that continued increases could place even greater strain on businesses and consumers alike.