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Jakarta, Indonesia: Indonesia said on Tuesday it would not increase fuel prices despite rising budget pressures from the war in the Middle East.
A government statement sent to AFP said there would be no increase "for subsidised or non-subsidised" fuel from April 1, and urged citizens not to panic in reaction to "misinformation" being spread about a pending price hike.
"We hope that the public will not panic or feel anxious because we guarantee the availability of fuel. We guarantee it. And there is no price adjustment," it quoted presidential spokesman Prasetyo Hadi as saying.
Indonesia, an oil producer, is nevertheless a net importer and heavily subsidises fuel and natural gas for domestic consumers.
The government has doggedly defended the subsidy, which at $12.3 billion represents about five percent of the total annual budget for 2026.
The 2026 fuel subsidy calculation was premised on a global oil price of $70 per barrel, but prices have since topped $100.
Prasetyo insisted on Tuesday that "the government guarantees the availability of fuel for the public at affordable prices".
