Energy and Mineral Resources Minister Assures Subsidized Fuel is Safe During Eid, Asking the Public Not to Panic Buying

JAKARTA - Energy and Mineral Resources Minister Bahlil Lahadalia stated that there was no increase. The price of subsidized fuel remains safe until Eid al-Fitr, even though the world oil price had jumped sharply due to tensions in the Middle East. He also asked the public not to be tempted by panic buying.

The statement was made by Bahlil at the Presidential Palace, Jakarta, Tuesday, March 10, before a meeting with the President. According to Bahlil, the discussion that will be brought may still revolve around preparations for Eid al-Fitr, ranging from food availability, fuel, to the impact of the latest developments in the Middle East.

Bahlil highlighted the rapid fluctuation in oil prices. He said prices had risen above US$100 per barrel, then dropped again to the range of US$80-90 per barrel.

"My feeling is still related to the preparation for Eid al-Fitr and the availability of food, then fuel, and also how to respond to the latest developments related to tensions in the Middle East," said Bahlil.

Regarding fuel subsidies, Bahlil emphasized that the government had discussed it with the Minister of Finance. As a result, subsidized fuel prices are guaranteed not to change until Eid.

"I can confirm that regarding fuel subsidies until the holidays, God willing, there will be no increase. So the state is present to ensure that even though there is an increase in the world crude oil price, the subsidy remains the same," he said.

However, Bahlil admitted that if the spike in world oil prices continued, the pressure on the government's budget would increase. Therefore, the government began to prepare mitigation steps by encouraging energy sources other than fossil fuels, including plant energy.

Bahlil also dismissed concerns about fuel stocks. He confirmed that domestic supplies were sufficient and the public did not need to hoard.

"I suggest and ask that there is no need for panic buying because our fuel stock is sufficient," he said.

Bahlil said that the figure of 21 to 25 days of reserves that was widely discussed referred to storage capacity, not that the supply would run out. Because, distribution and imports continue, while Indonesia's oil imports also do not depend solely on the Middle East.