Long Fuel Queues Could Raise Food Prices Nationwide

RRI.CO.ID, Jakarta - Before July, long lines at gas stations were mostly seen among drivers buying subsidized diesel fuel. Now, the queues have spread to people trying to buy Pertalite and even Pertamax, creating an unusual situation across many areas.

Based on field observations, when Pertalite runs out at gas stations, many drivers switch to Pertamax. This often causes Pertamax supplies to be depleted as well, making the fuel shortage even more widespread.

As noted earlier, long queues for subsidized diesel can trigger fluctuations in food prices. This happens because Indonesia's main logistics network depends heavily on trucks and commercial vehicles that use subsidized diesel.

When these vehicles spend hours waiting for fuel, deliveries may arrive late at wholesale markets. Lower supply during trading hours can push food prices higher and increase price volatility.

The impact is no longer limited to subsidized diesel users. The scarciy of Pertalite is also driving up household expenses, while concerns about fuel shortages are reducing people's mobility and slowing economic activity.

Consumer purchasing power is coming under pressure because many drivers have no choice but to buy the more expensive Pertamax. This forces households to spend more on transportation, leaving less money for other daily needs.

The government is expected to restore normal fuel supplies as quickly as possible. However, the challenge is becoming more complex as the Indonesian rupiah weakens and global crude oil prices rise again following increased tensions between the United States and Iran.

Overall, the current fuel shortages and long queues reflect a strong connection between government fiscal capacity, exchange rate volatility, and geopolitical tensions in the Middle East. These factors together could create wider economic risks, including higher food prices and weaker consumer spending.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)