Regarding the Transition of Non-Subsidiary Fuel Users After the Increase, Experts: The Potential is Not Big

JAKARTA - Energy economics observer from Gadjah Mada University (UGM), Fahmy Radhi, said the government's decision to raise a number of non-subsidized fuel prices as of April 18, 2026 was right. The price increase is a correction to the previous policy which did not follow the market mechanism.

The increase in fuel prices has occurred relatively slowly compared to a number of other countries. Since March 2026, several countries such as Singapore, Malaysia, India, and countries in Europe have already made adjustments to fuel prices in line with the surge in world crude oil prices. Indonesia only made adjustments in mid-April, which is considered to show the government's efforts to hold down the price pressure so that it is not immediately felt by the public.

"I think it's right. In fact, this is a correction of the previous policy which did not raise the price of non-subsidized fuel. So far, the price of non-subsidized fuel, especially RON 92 and above, has been determined by the market mechanism in accordance with economic conditions," said Fahmy when contacted, Saturday, April 18.

He explained that when the world oil price rises, the price of non-subsidized fuel should also rise. Conversely, prices can fall when global oil prices fall, although not always proportionally.

"When the previous government did not raise the price of non-subsidized fuel, in my opinion it was a wrong decision. And now it is corrected with the increase on April 18," he said.

Fahmy assessed that this policy would not have a major impact on the economic conditions of the community. This is because non-subsidized fuel consumption is relatively small and is not used for vital sectors such as the distribution of basic necessities.

"The impact on the community according to me is not significant. Because the number of non-subsidized fuel consumers is not as large as pertalite and solar users. In addition, non-subsidized fuel is also not used for transportation of basic necessities," he explained.

According to him, unlike subsidized fuels such as Pertalite and solar, if they are raised, they will immediately trigger inflation and suppress people's purchasing power. Therefore, the government's decision to hold subsidized fuel prices is considered a right step to maintain economic stability.

"If Pertalite and solar are raised, it will definitely trigger inflation and reduce purchasing power. So the decision to raise non-subsidized fuel, but to hold subsidized fuel, in my opinion, is right," said Fahmy.

Regarding concerns about a shift in users from non-subsidized fuel to subsidized fuel, Fahmy assessed that the potential was relatively small. He assessed that the characteristics of non-subsidized fuel consumers are not easy to switch to fuel with a lower octane. Moreover, the government did not increase the price of Pertamax and Pertamax Green 95, which made the public would not immediately switch to Pertalite.

"The risk is certainly there, but it is small. Because users of non-subsidized fuel are generally owners of private cars, even luxury cars. They do not immediately switch to subsidized fuel because it can have an impact on the vehicle's engine. Moreover, the price of Pertamax and Pertamax Green also does not rise," he said.

In line with Fahmy, the observer of the State University of Manado (Unima), Robert Winerungan, supports the government's steps regarding the increase in the price of non-subsidized fuel and not raising subsidized fuel, Pertamax, and Pertamax Green 95 to maintain people's purchasing power, especially the lower middle class. This decision, said Robert, is also to control inflation.

"Non-subsidized BBM is consumed by the upper class who do not contribute much to inflation," he said.

Robert also highlighted that compared to many other countries, fuel prices in Indonesia are still relatively cheap, especially for subsidized fuel types such as Pertalite and solar. In fact, in some global comparisons, Indonesian fuel prices are still below the average price in the Asian region and developed countries.

However, he reminded the government to anticipate the potential for a shift in consumption to subsidized fuel through a more assertive policy. One of them is by limiting the use of subsidized fuel for certain vehicles.

"There needs to be rules, for example, vehicles with prices above Rp500 million should not consume subsidized fuel. Don't let anyone take advantage of this policy for personal gain," said Robert.

He added that the public also needed to play a role in maintaining energy consumption to remain efficient. In addition, the government must ensure that the supply of subsidized fuel remains safe so that there is no shortage and long queues in the field.

Citing the MyPertamina website, the price of a number of non-subsidized fuels has increased significantly, including Pertamax Turbo as of April 18, which is priced at Rp. 19,400 per liter from the previous Rp. 13,100 per liter. For Dexlite, the price is priced at Rp. 23,600 per liter, up from the previous Rp. 14,200 per liter.

The increase also occurred in Pertamina Dex, which is currently priced at Rp23,900 or up from the previous Rp14,500. However, Pertamina decided not to increase the price of subsidized fuel and a number of non-subsidized fuels, including Pertamax with RON 92 which is still priced at Rp12,300 and Pertamax Green at Rp12,900 so that it remains the main cushion for people's purchasing power in the midst of global pressure.