Energy Economist Predicts Pertamax Prices to Drop in July

TEMPO.CO, Jakarta - The price of non-subsidized fuel, including Pertamax, is expected to decline in July as global oil prices continue to ease, according to an energy economist from Gadjah Mada University (UGM), Fahmy Radhi.

"Pertamax prices should be reduced at the beginning of July," Fahmy said when contacted from Jakarta on Tuesday.

He said global oil prices have fallen to around US$80 per barrel, significantly lower than the level above US$100 per barrel recorded during heightened tensions between the United States, Israel, and Iran.

According to Fahmy, Iran's decision to close the Strait of Hormuz at the peak of the conflict disrupted global oil supplies and pushed prices higher. However, as tensions between Iran and the United States eased and the strait was reopened, concerns over oil shortages began to subside, causing prices to decline.

Fahmy noted that negotiations between Iran and the US remain uncertain, as the outcome does not yet guarantee a lasting peace agreement.

"Prices will continue to fluctuate, and it is unclear for how long. However, for Indonesia, if Pertamax prices remain above market levels during an evaluation, the government should lower them," he said.

Finance Minister Purbaya Yudhi Sadewa also said Pertamax prices could decrease in line with global oil price movements.

Purbaya said the global economy has received a boost from prospects of a peace agreement between the US and Iran. If an agreement is reached, he said, it could help stabilize the rupiah exchange rate, improve financing conditions, and encourage stronger investment.

Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) said the government continues to secure alternative energy sources amid ongoing negotiations between Washington and Tehran.

ESDM spokesperson Dwi Anggia said the talks have provided positive signals toward easing tensions in the Middle East and stabilizing global oil prices. However, she emphasized that relations between Iran and the US remain fluid.

"Optimism is important, but precautionary measures must also be taken," Anggia said.

Read: Falling Pertamax Sales Force Closure of Pertashop Outlets

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