The impact of the Iran-Israel conflict is expected to cause fuel prices to rise in many countries, including Indonesia. As one of the world’s largest producers of crude oil, Iran has launched an attack on Israel. There have been concerns that the attack will send oil prices to soar.
Pertamina, as an Indonesian state-owned oil and gas company, guarantees fuel price stability. The company is committed to keeping domestic the prices stable.
“There is a tendency of crude oil prices to rise, but we still ensure that the national fuel supply is in a safe condition,” said PT Pertamina Patra Niaga, President Director Riva Siahaan, as reported by Antara.
The government will ensure the stability of fuel supply in Indonesia, especially around Eid al-Fitr 2024, when an increase in fuel consumption is necessary.
In addition, the Director General of Oil and Gas at the Energy and Mineral Resources Ministry, Tutuka Ariadji, assures that fuel prices will remain stable until at least June 2024.
Any effects on gas prices depend on the countries’ next moves and whether they seek further retaliation against the already raging war. If Iran and Israel continue to clash, there is a possibility of an impact on fuel prices becoming more expensive.
Although fuel stocks are still safe, the government is still looking at other potential reserves outside the Middle East to anticipate problems in the future.
Sri Mulyani holds a meeting to anticipate the economic impact of the Iran-Israel conflict
The escalating conflict in the Middle East has led Finance Minister Sri Mulyani to hold a strategic meeting with the deputy finance minister and the ministry’s first echelon officials.
On her personal Instagram account @smindrawati, Sri Mulyani revealed that the global economic and financial situation could affect various economic indicators.
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The former managing director of the World Bank also said that the State Revenue and Expenditure Budget (APBN) is an important instrument for managing global and national turmoil.
How expensive are fuel prices right now?
The average price for a liter of regular fuel or petrol in Indonesia is around IDR 12.000 – IDR 15.000.
While several business entities, such as Shell and Vivo, changed the price of their fuel products as of April 1, 2024, Pertamina decided not to change the price of non-subsidized fuel, including diesel price.
Currently, the price of Pertamax is IDR 12.950 per liter, Pertamax Green 95 IDR 13.900 per liter, Pertamax Turbo IDR 14.400 per liter, Dexlite IDR 14.550 per liter, and Pertamina Dex IDR 15.100 per liter.
Although there is a possibility of fuel prices rising, the public is advised not to make large-scale purchases.
If you are planning a last-minute road trip, it may be worth going somewhere closer or taking public transportation.
