Meanwhile, subsidies may not be able to cushion the impact of a massive spike in diesel prices since the start of the US-Israeli war on Iran.

Diesel users, from individuals to traders, grapple with the removal of blanket diesel subsidies.

As usual, the burden is shifted to the poor, who can barely make ends meet.

Under pressure to control a ballooning energy subsidy budget, President Joko Widodo announced the price of subsidised fuel would be increased by about 30%, after weeks of speculation of a hike.

Southeast Asia's largest economy has tripled this year's energy subsidy budget to US$34.22 billion in order to keep some fuel prices and power tariffs unchanged and manage inflation.

Fuel prices, which are subsidised in oil-producing Ecuador, have risen sharply since 2020, almost doubling for diesel from US$1 to US$1.90 per gallon and swelling from US$1.75 to US$2.55 for gasoline.