Jakarta. The government said Thursday it had little choice but to raise the price of Pertamax gasoline by 32% to Rp 16,250 ($0.90) per liter, citing a surge in global crude oil prices fueled by prolonged geopolitical tensions in the Middle East.

The sharp increase took effect on Wednesday and marked the first adjustment to Pertamax prices in several months despite rising international energy costs.

Energy and Mineral Resources Ministry spokesperson Dwi Anggia said ongoing geopolitical instability had pushed global oil prices to elevated levels, making a domestic price adjustment unavoidable for non-subsidized fuel products.

“If we look at current conditions, geopolitical tensions are still ongoing and continue to have a significant impact on oil prices,” Dwi said on Thursday.

According to Dwi, Pertamax is a non-subsidized fuel product whose retail price is determined based on economic and market considerations. As a result, increases in global oil prices must eventually be reflected in domestic pricing.

“Pertamax is a fuel product whose price is based on economic calculations. Therefore, when global oil prices rise, adjustments are necessary,” she said.

Dwi explained that fuel pricing is not determined solely by crude oil prices. Authorities also take into account a range of other cost components, including distribution expenses, storage costs, and taxes.

“The calculation includes distribution costs, storage costs, taxes, and other related expenses,” she said.

According to the ministry, fuel pricing reflects the entire supply chain, from procurement and transportation to final delivery to consumers.

The government has maintained subsidies for other fuel products, including Pertalite and Biosolar, but non-subsidized fuels such as Pertamax remain subject to market-based pricing mechanisms.