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View all search resultsAustralian Prime Minister Anthony Albanese warned the economic shocks of the war in the Middle East would be felt for months and encouraged citizens to take public transport in a rare address to the nation on Wednesday.
As a result of the war between Iran and the US and Israel, global crude oil prices have increased to above US$100 per barrel, far exceeding the $70 per barrel assumption in the 2026 state budget, which may result in higher energy subsidies.
Finance Minister Purbaya Yudhi Sadewa says the worst-case scenario of domestic crude averaging US$92 per barrel throughout the year could force the government to reduce fuel subsidies or cut spending elsewhere, such as on the free meals program.
An aggressive biodiesel push could pile pressure on energy subsidies in the state budget due to fluctuations in palm oil prices and squeeze already limited feedstock supplies that are also crucial for other industries.
As of Friday, nearly 300 reports of vehicle breakdowns potentially connected to Pertalite had been recorded across at least seven regencies and cities in East Java, 99 percent of which involved motorcycles.
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