Indonesia's energy minister Bahlil Lahadalia has supported the recent increase in non-subsidized fuel prices, saying they are determined by global oil movements and exchange rate shifts, the Jakarta Globe reported Monday.
He noted that premium fuels like high-octane petrol and advanced diesel products are sold under market pricing and are generally used by higher-income consumers, so they are not included in subsidy programs. Several non-subsidized fuel types saw significant price hikes, while regulated subsidized fuels remained unchanged, reportedly.
Authorities said fuel pricing is periodically adjusted to reflect changes in international crude oil trends and the value of the rupiah against the US dollar. The government also continues to encourage oil and gas exploration through licensing rounds to strengthen long-term energy supply and investment inflows, the news outlet said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)