Indonesia: Non-Subsidized Fuel Prices Rise, Minister Cites Market Mechanism

Indonesia's energy landscape sees another adjustment as PT Pertamina (Persero) implements price increases for several non-subsidized fuel products. Starting April 18, 2026, consumers will notice higher prices for Pertamax Turbo, Dexlite, and Pertamina Dex. Pertamax Turbo now retails at Rp 19,400 per liter, a substantial jump from Rp 13,100. Dexlite and Pertamina Dex have also seen significant hikes, now priced at Rp 23,600 and Rp 23,900 per liter, respectively, up from their previous prices of Rp 14,200 and Rp 14,500.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, has clarified that these price adjustments are in line with market mechanisms and existing regulations. He emphasized that government subsidies are strictly applied only to subsidized fuels, while non-subsidized fuels, often used by industries and higher-income consumers, are subject to market dynamics. This distinction is crucial for understanding Indonesia's energy pricing policy. According to the Minister, fuels with high octane ratings like Pertamax Turbo (RON 98) are not categorized as subsidized, as per the Ministry of Energy and Mineral Resources Regulation of 2022. Consequently, their prices naturally fluctuate with global market trends.

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The government emphasizes that price regulation is only applied to subsidized fuel, while fuel for industrial needs and the affluent adjusts to market prices.

Pertamina's official statement, accessible via the MyPertamina application, confirms that these price adjustments are based on the established pricing formula for retail sales of gasoline and diesel fuel types distributed through gas stations. This formula aligns with Ministerial Decree (Kepmen) ESDM No. 245.K/MG.01/MEM.M/2022. While the price increases may impact consumers, the government maintains that this approach ensures a sustainable energy sector by allowing market forces to dictate prices for non-essential fuel types. The focus remains on ensuring the availability and affordability of subsidized fuels for the broader population, while non-subsidized fuels are expected to align with international market conditions.

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According to the Regulation of the Minister of Energy and Mineral Resources (ESDM) in 2022, high octane fuel such as RON 98 or Pertamax Turbo is not included in the subsidy category.