“No, [fuel prices will not increase]. The pressure will be absorbed in the state budget. If we allow [fuel prices to increase], like in other countries, people could panic,” Purbaya said on Thursday, as quoted by Antara.

Purbaya said current oil prices had already been factored into full-year subsidy calculations and that fiscal space remained adequate, supported by available reserves as well as revenue measures and government spending cuts to keep the budget intact.

“The figures are still safe until now,” he emphasized. “I still have budget buffers we can tap, some of which not all analysts are aware of.”

The amount allocated for fuel subsidies is based on an assumed average oil price, which amounts to $70 in the 2026 budget plan, meaning higher market prices would widen subsidy costs.

Brent Crude settled at $108.65 a barrel after briefly spiking to nearly $119 on Thursday following overnight strikes by Iran and United States allies on key energy infrastructure in the Gulf overnight, extending the US-Israeli war against Iran into its 20th day.

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