Indonesia’s Pertamina is Jacking Up Fuel and LPG Prices as Global Crude Hits $100

JAKARTA, Investortrust.id — PT Pertamina Patra Niaga, the trading arm of state energy firm Pertamina, has unleashed a wave of price hikes for non-subsidized liquefied petroleum gas (LPG) and premium fuels, effective April 18, 2026. The move comes as the Indonesian Crude Price (ICP) rocketed to $102.26 per barrel in March—a staggering $33.47 jump from the previous month—driven by escalating geopolitical friction between Israel and Iran.

For Southeast Asia’s largest economy, this price adjustment is a blunt reminder of its deepening energy insecurity. With LPG import dependency hitting a record 83.97% this year, Indonesia is effectively importing global volatility directly into its kitchens and factories. The massive price gap between premium products and subsidized alternatives now threatens to blow a hole in the national budget as consumers and industries scramble for state-funded relief.

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The Price of Geopolitical Chaos

The retail price for a 12 kg (26.5 lb) LPG cylinder has jumped 18.75% to Rp 228,000 ($14.34), while the 5.5 kg (12.1 lb) variant rose to Rp 107,000 ($6.73). These prices apply to the core markets of Java, Bali, and Nusa Tenggara, with other regions facing even higher costs due to maritime logistics. This marks the first upward adjustment since late 2023, reflecting a global supply chain under duress.

"The surge in ICP is inseparable from the global geopolitical dynamics that heated up throughout March 2026," said Laode Sulaeman, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources. He noted that the conflict has disrupted vital energy arteries, specifically the Strait of Hormuz, which handles approximately 20% of the world’s oil supply.

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A Looming "Subsidy Leakage" Crisis

The pain is not limited to cooking gas. Pertamina also sent shockwaves through the industrial sector by hiking Pertamina Dex (high-quality diesel) by 65% to Rp 23,900 ($1.50) per liter. Pertamax Turbo also saw a 48% spike to Rp 19.400 ($1.22) per liter.

Bhima Yudhistira, Executive Director of the Center of Economic and Law Studies (Celios), warned that these price gaps are dangerous. "DEX is not just for high-end vehicles; it is used for industrial machinery and heavy equipment in mining and plantations," Bhima said on Sunday. He cautioned that the massive price disparity would inevitably drive "consumption shifting" toward subsidized Solar (diesel), potentially leading to supply shortages and widespread subsidy abuse.

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Pivoting Away from the Middle East

In response to the 83.97% import reliance, Jakarta is executing a radical shift in its sourcing strategy. The Ministry of Energy revealed it is diverting LPG imports away from the Middle East toward the United States, which already accounts for nearly 70% of Indonesia’s supply, as well as Australia and other ASEAN neighbors.

To shore up the home front, Pertamina has deployed a massive fleet of 345 vessels, including 43 dedicated LPG tankers like the MT Gas Attaka and Gas Ambalat, to ensure the archipelago's 17,000 islands remain fueled. The government is also ordering domestic refineries to prioritize LPG production over petrochemical feedstocks to protect the 3 kg "melon" tanks used by millions of low-income households.