Indonesia is in talks with private retailers to set a pricing formula for non-subsidised fuel as global oil prices surge above USD 100 per barrel.
JAKARTA: Indonesia’s government is in discussions with private fuel retailers to formulate a pricing mechanism for non-subsidised fuel amid a surge in global oil prices.
Energy and Mineral Resources Minister Bahlil Lahadalia stated the move aims to determine a “good and prudent” pricing formula that considers the public’s current economic conditions.
“Up to now, we are still regulating and seeking a good and prudent formula,” he said, adding that details would be announced once finalised.
He noted that global oil benchmarks, including Brent and West Texas Intermediate, are currently trading above USD 100 per barrel, a significant increase from the January 2026 average of around USD 64 for Brent.
The price of subsidised fuel in Indonesia remains unchanged following a government announcement on March 31 that there would be no adjustment for April.
Subsidised RON 90 petrol is sold at a fixed price of Rp10,000 (RM2.37) per litre, while subsidised diesel (biosolar) is capped at Rp6,800 (RM1.61) per litre, with the government absorbing the cost difference.
In contrast, non-subsidised fuels are priced based on market mechanisms, with Pertamax (RON 92) at around Rp12,300 (RM2.91) per litre and Pertamax Turbo (RON 98) at about Rp13,100 (RM3.10) per litre for March.
These non-subsidised prices are subject to periodic adjustments in line with global oil prices, exchange rates, and other cost components.
For non-subsidised diesel, Dexlite is set at Rp14,200 (RM3.36) per litre, while Pertamina Dex is priced at Rp14,500 (RM3.43).
