Indonesia to Keep Fuel Prices Steady Starting April 1
Indonesia will not raise fuel prices tomorrow following a directive from the president. The government will use subsidies to offset rising global crude costs.
The government of Indonesia has confirmed that the state-owned energy entity PT Pertamina Geothermal Energy Tbk will not raise fuel prices on April 1. Presidential spokesperson Prasetyo Hadi announced the decision on Tuesday, noting that domestic fuel supplies are currently sufficient to meet demand. The move follows a direct instruction from President Prabowo Subianto to maintain existing price levels for both subsidized and non-subsidized fuel products. The administration aims to shield the public from the volatility of international energy markets. > "The decision was taken after considering the interests of the people, as the war in Iran raises global energy prices." Prices for subsidized 90-octane gasoline have been held at 10,000 rupiah ($0.59) per litre since 2022, while diesel remains at 6,800 rupiah per litre. To accommodate these fixed rates amid rising global crude costs, the government has committed to increasing its subsidy budget. For the 2026 fiscal year, the energy subsidy budget is projected at 381.3 trillion rupiah ($22.4 billion). This calculation was based on an assumed crude price of $70 per barrel and an exchange rate of 16,500 rupiah per dollar, though current market figures indicate significantly higher oil prices and a weaker rupiah. While the state-owned firm's prices are locked, it remains unclear if the presidential directive will influence private sector retailers such as Shell plc or BP p.l.c.. Local media have reported increased activity and long lines at various petrol stations across the country as consumers sought to fill their tanks ahead of the anticipated April 1 price adjustments.
