<![CDATA[Fuel pricing is a strategic legal issue involving state authority and consumer protection. Global oil price volatility resulting from geopolitical conflicts in the Middle East during 2025–2026 exposed weaknesses in Indonesia's fuel regulatory mechanism, which still relies on administrative pricing and direct subsidies from the State Budget (APBN) pursuant to Presidential Regulation No. 117 of 2021. This study aims to propose legal reforms to these regulations by comparing them with Thailand's Oil Fuel Fund system, as governed by the Oil Fuel Fund Act B.E. 2562 (2019). Employing a micro-normative approach combined with Van Hoecke’s Functional Method and Law-in-Context Method, the study finds that the two countries utilize different mechanisms as functional equivalents to address the same problem. The comparison reveals that Thailand's Oil Fuel Fund mechanism is more fiscally efficient and sustainable than Indonesia's direct subsidy system. The study recommends three ideal reforms: first, establishing a Fuel Price Stabilization Fund modeled after Thailand's Oil Fuel Fund and creating an independent entity to manage it; second, reforming Presidential Regulation No. 117 of 2021 to incorporate a more transparent, formula-based pricing mechanism accessible to the public; and third, issuing a Regulation of the Minister of Energy and Mineral Resources (ESDM) to establish a fuel pricing formula based on international oil market price indices.]]>
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