The price adjustments are selective, targeting only non-subsidized products. Subsidized fuels, including Pertalite (RON 88) and Biosolar (diesel), remain unchanged at Rp10,000 and Rp6,800 per liter, respectively. However, the cost of higher-octane gasoline and premium diesel has risen significantly. Pertamax Turbo jumped from Rp13,100 to Rp19,400 per liter, while Dexlite increased from Rp14,200 to Rp23,000 per liter. Pertamina Dex saw the steepest relative increase, rising from Rp14,500 to Rp23,900 per liter. Standard Pertamax (RON 92) and Pertamax Green (RON 95) remained stable at Rp12,300 and Rp12,900 per liter, respectively.
The timing of the hike aligns with broader regional trends. From February to March 2026, Indonesia had already implemented moderate adjustments to non-subsidized fuels, with increases ranging from 5 to 10 percent. For instance, Pertamax had previously risen from Rp11,800 to Rp12,300 per liter, and Dexlite from Rp13,250 to Rp14,200. The April 18 adjustment represents a more substantial shift, particularly for diesel products, where prices more than doubled in certain segments compared to pre-March levels.
The increase in the price of non-subsidized fuel is considered a logical consequence because the determination scheme follows the international market price.
Photo by JANILSON PEREIRA TRARBACH / Pexels
Wisnu Wibowo, an economist at Airlangga University, explained that the pricing mechanism for non-subsidized fuels is tied to the Mean of Platts Singapore (MOPS) and Argus benchmarks. Under Minister of Energy and Mineral Resources Decree Number 245.K/MG.01/MEM.M/2022, retail prices are adjusted periodically based on reference global prices, the rupiah exchange rate, and tax components. The recent surge in global oil prices, which broke above the $100-per-barrel mark due to tensions involving Iran and the US-Israel bloc and restrictions in the Strait of Hormuz, necessitated these retail adjustments.
The government has maintained that subsidized fuel prices will not change, a policy designed to act as a cushion for domestic economic stability and purchasing power. Laode Sulaeman, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, confirmed that no price increases would be applied to subsidized categories. He noted that any developments regarding non-subsidized fuel prices would be officially communicated through formal channels, urging the public to disregard unverified rumors that had circulated in the weeks prior to the announcement.
The fiscal implications of rising oil prices are significant for the Indonesian state budget. Every $1 increase in the global oil price has the potential to add up to Rp6.7 trillion to the state budget. While this revenue boost provides some fiscal buffer, the government views widespread fuel price hikes as a last option. The current strategy focuses on adjusting only non-subsidized products to reflect market realities while shielding the majority of the population, who rely on subsidized fuels, from immediate cost-of-living shocks.
Photo by Jan van der Wolf / Pexels
Regional comparisons highlight Indonesia’s relatively stable position. In Southeast Asia, countries with full market mechanisms, such as Thailand and Vietnam, have experienced sharper price spikes, particularly in diesel, which directly impacts logistics and industrial sectors. Singapore, which imposes high energy taxes and offers no subsidies, records the highest fuel prices in the region. In contrast, Malaysia, which provides large subsidies, has been able to hold back price rises more effectively. Indonesia’s mixed model allows it to balance fiscal responsibility with social stability, though the recent steep hikes in premium diesel and high-octane gasoline signal the growing pressure of global energy costs on specific consumer segments and businesses.
In addition to gasoline and diesel, the cost of Liquefied Petroleum Gas (LPG) has also risen. In Bali, the price of 5.5 kg cylinders increased from Rp90,000 to Rp107,000, while 12 kg cylinders rose from Rp192,000 to Rp228,000. Authorities have urged the public to practice energy conservation, particularly in private vehicle use, to mitigate the overall impact of higher fuel costs on household budgets.
Helen Ward writes about energy with a focus on electricity markets, oil and gas, renewable power, nuclear developments, and changes in energy policy. She follows supply trends, pricing developments, major projects, and government decisions. Helen's reporting connects immediate energy stories with the wider market and policy factors that help explain why they matter.
