The ministry's Director General of Oil and Gas, Tutuka Ariadji, made the statement during a webinar regarding the impact of the Iran-Israel conflict on Indonesia's economy followed here on Monday.
He made the remark when asked about the likelihood of an increase in fuel prices due to the projected surge in the world's oil prices.
Ariadji noted that currently, the government awaits Israel's response to Iran's attack. He opined that the world tends to not want the oil prices to be too high.
"This is a very strong factor for further consideration regarding escalation," he stated.
The Ministry of Energy and Mineral Resources has conducted simulations on the impact of the escalation of conflict in the Middle East on oil prices, along with various parameters, such as exchange rates, Indonesian Crude Price (ICP), or index price for Indonesian crude oil, as well as other factors.
The attack on the Iranian Consulate in Damascus, Syria, on April 1 triggered the latest hostility between Iran and Israel.
Iran then launched a retaliatory attack by firing dozens of ballistic missiles and hundreds of drones at Israel on Saturday night (April 13).
According to Israel, the attack was able to be neutralized and only hit an Israeli military air base, with no serious damage incurred.
Indonesia expressed its deep concern over the escalation of the situation in the Middle East and urged Iran and Israel to exercise restraint.
The Indonesian Foreign Affairs Ministry, through its statement uploaded on social media on Sunday (April 14), also urged the United Nations Security Council to promptly de-escalate tensions and continue working towards lasting peace in the Middle East.
One of the highlighted impacts of the conflict is a projected increase in oil prices, reaching US$100 per barrel. Based on data from the Ministry of Energy and Mineral Resources, the ICP as of April 12, 2024, was recorded at US$89.51 per barrel.
Related news: Fuel price retained for sustained growth of people's economy: Minister
Related news: President ensures fuel prices will not increase in near future
Related news: No fuel price hike in near term: Minister Hartarto
Translator: Putu Indah, Raka Adji
Editor: Azis Kurmala
Copyright © ANTARA 2024
