Indonesia's state-owned oil company Pertamina has increased the prices of non-subsidised gasoline grades Pertamax and Pertamax Green. The hikes come as the government grapples with soaring subsidy costs and aims to support the rupiah. While the fuels are not directly subsidised, the move is part of broader economic adjustments. Economists warn of limited inflationary impact as these fuels are mainly used by private vehicles, not public transport. Workers express concern over the sudden rise adding to their cost of living pressures.
Workers fill up vehicles at a petrol station of the state-owned company Pertamina in Jakarta, Indonesia on Mar 10, 2026. Add CNA as a trusted source to help Google better understand and surface our content in search results.
The price of 92-octane gasoline, known as Pertamax and widely used by the country's middle class, has been raised to 16,250 rupiah per litre from 12,300 rupiah per litre, a 32.1 per cent increase. Pertamax Green, a 95-octane fuel blended with ethanol, has been raised to 17,000 rupiah per litre from 12,900 rupiah per litre, a 31.8 per cent rise.
The Pertamax fuels are normally not subsidised, and it was not known if Pertamina would be compensated for keeping the price unchanged since the war began.for the second time in a month on Tuesday to shore up confidence in the currency and budget data last week showed the cost of subsidies for fuel, power and fertilisers had jumped 208 per cent in May from a year earlier. Finance Minister Purbaya Yudhi Sadewa said the inflationary impact of the price rises was expected to be limited because the fuels are not used for public transportation.
DBS Bank senior economist Radhika Rao said the affected fuels accounted for about 7 per cent of domestic fuel sales and 7.5 per cent of energy consumption in the transportation sector in 2023. She said alongside monetary policy adjustments, fiscal policy also needed to adopt a defensive stance to support the economy. Masgal Carta, a worker in Bandung, West Java, said the sudden price rise was going to further squeeze his finances.
"Honestly, I was quite shocked this morning when I found out that fuel prices had gone up, because my motorbike also uses Pertamax," he said. "My income has stayed the same, prices of basic goods have already started to rise, and now fuel, our main means of transportation to get to work, has increased suddenly," Masgal told Reuters.
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