Government ensures subsidized fuel will not rise, non-subsidized fuel prices have the potential to fall

Jakarta - Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia ensures that the government will not raise the price of subsidized fuel until the end of the year. However, the price of a number of non-subsidized fuels has the potential to fall if world oil prices weaken.

This was conveyed by Bahlil at the Presidential Palace Complex, Jakarta, Monday, July 20. Bahlil also said that the condition of the national fuel stock was above the minimum limit. Crude oil and fuel supplies from a number of countries have also been secured until the end of the year.

Bahlil has asked Pertamina and private enterprises to prepare to adjust the price of non-subsidized fuel if the world oil price falls. However, the government has not set the time or amount of the decline. According to Bahlil, the change in the world oil price is fast.

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Prices can fall in one day, then rise again in a short time. This condition is the basis for the government to find a price formula that does not burden consumers and business entities. He said that non-subsidized fuel users include about 20 percent of consumers. The government will consider the purchasing power of this group as well as the business conditions of oil companies.

Bahlil also conveyed that the government targeted the use of gasoline with a 10 percent ethanol mixture or E10 to start in 2027. The program will continue gradually towards E20 after the domestic ethanol industry is ready.