How to Prevent Fuel Prices from Rising Due to the Iran-America Conflict

The Indonesian government has various options to anticipate the rise in domestic fuel prices.

How to Prevent Fuel Prices from Rising Due to the Iran-America Conflict
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KatadataOTO – The escalating tensions between Iran and the United States could potentially have a negative impact. Especially on global crude oil prices.

If that happens, then the price of fuel oil (BBM) in several countries, including Indonesia, will increase.

For that reason, the Indonesian government must anticipate this situation. This is so that domestic motorists can still buy fuel at an affordable price.

“It seems the government needs to strengthen fiscal and monetary coordination to maintain our macroeconomic stability,” said Yannes Martinus Pasaribu, an automotive observer and academic at the Bandung Institute of Technology (ITB), to KatadataOTO some time ago.

Shell Fuel Can Soon Be Purchased, Already Negotiating with Pertamina
Photo: KatadataOTO

Yannes explained that an adjustment to the State Revenue and Expenditure Budget (APBN) must also be made.

This is to anticipate the swelling of fuel subsidies in the country in 2026, as a result of the conflict between the United States and Iran.

“While holding back adjustments to subsidized fuel prices as long as global oil prices are still below 100 US dollars per barrel,” he continued.

That way, the impact of the turmoil in the Middle East will not directly burden the public or motorists in the country.

In addition, this condition will also not have a negative impact on the country's economy. Because recently, the situation has indeed been unstable.

“Then, immediately accelerate the diversification of oil supply sources by accelerating domestic energy production through increased lifting from existing wells,” Yannes added.

The government is also advised to develop new and renewable energy (EBT) in order to reduce the still high dependence on imports as much as possible.

He revealed that the government's main focus should be on strengthening domestic energy security. That way, the conflict between the United States and Iran will not be felt too much.

“Maintaining fiscal stability and reducing import dependency,” Yannes emphasized.

For your information, Donald Trump, the President of the United States, once issued a threat of very strong action against Iran.

Imported Fuel
Photo: Antara

This threat of an attack emerged following reports of a mass slaughter carried out by the Tehran regime against its own citizens.

According to a report by The Economist, if an attack by the US were to actually happen, the option Washington would take is a limited strike.

The target would be a political decapitation to overthrow the power of the Iranian officials who have been in power for 47 years.


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