June 2, 2026 | 01:07 pm
TEMPO.CO, Jakarta - The Ministry of Transportation has issued a new regulation following a drop in aviation fuel (avtur) prices, effective June 1, 2026. Through the Decree of the Director General of Air Transportation Number AU.005/2/7/DRJU.DAU/2026 dated June 1, 2026, the government has set the average price of avtur at Rp26,089 per liter.Despite the cheaper fuel, the Ministry of Transportation is keeping the fuel surcharge cap at 50 percent of the price ceiling for economy class tickets. This rate remains unchanged from May 2026, when the average avtur price stood higher at Rp29,116 per liter.The Director General of Air Transportation, Lukman F. Laisa, stated that scheduled commercial airlines operating domestic flights are still permitted to levy a fuel surcharge on economy class passengers up to a maximum of 50 percent of the upper-limit fare, depending on the service category."The amount of the additional charge (surcharge) as mentioned above can be applied starting from June 1, 2026, and with the implementation of this decree, our previous letter Number: AU.005/2/3/DRJU.DAU/2026 dated May 14, 2026, is revoked and declared invalid," Lukman said in the letter cited on Tuesday, June 2, 2026.How Will Cheaper Avtur Impact Airfares?The ministry has yet to determine how the cheaper avtur will impact airfares. Currently, the ministry is evaluating the potential for ticket price cuts that could result from the drop in fuel costs.The Head of Public Relations at the Directorate General of Air Transportation, Endah, confirmed that officials are still assessing the impact of the avtur price adjustment on airfares. "We are still calculating it and will share the results as soon as the assessment is finalized," Endah said.Prior to this, state-owned oil and gas giant Pertamina's trading arm subsidiary, PT Pertamina Patra Niaga, slashed avtur prices by around 10 percent, effective June 1, 2026. Nationally, the average avtur price for June 2026 has fallen by approximately 10 percent compared to the previous month.The Corporate Secretary of Pertamina Patra Niaga, Roberth MV Dumatubun, explained that the price adjustment followed established mechanisms and the government-mandated formula.The avtur price calculation relies on the average prices reported in international publications, using the Mean of Platts Singapore (MOPS) Kerosene/Jet as the primary regional market benchmark."When global energy prices trend downward, the adjustment will be reflected in avtur prices according to the applicable mechanism," Roberth said in a written statement on Monday, June 1, 2026.He added that the lower avtur prices are expected to ease airline operational costs, thus boosting domestic flight activity. Furthermore, he noted that more competitive pricing could support national tourism, strengthen regional connectivity, and stimulate economic growth across various regions.As for international flights, Roberth noted that avtur prices will continue to track market developments and regional competition. However, Pertamina ensures that meeting the needs of domestic flights remains the priority in managing aviation fuel supplies.Read: Indonesia's Pertamina Cuts Aviation Fuel Prices by 10%Click here to get the latest news updates from Tempo on Google News
