JAKARTA, Sept 19 — Indonesia will allow private fuel retailers like Shell and BP to import more gasoline through state energy firm Pertamina as their petrol stations are running dry, Energy Minister Bahlil Lahadalia said today.
Shell and BP-AKR, the operator of BP's fuel stations, said they have suffered inventory shortages for some gasoline products since late August. Shell said it had adjusted operational hours and staffing.
Yesterday, the nation's antitrust agency KPPU said that import restrictions on subsidised fuel limit consumer choices, contributing to shortages, and may be creating an unfair business practice.
Indonesia formally ended Pertamina's fuel retail monopoly in 2004, but the state company remains a dominant player. However, some demand began shifting to privately-run petrol stations due to restrictions on sales of subsidised fuels and following a corruption probe into Pertamina.
Flanked by executives from Shell, Pertamina, and BP-AKR at a press conference, Bahlil said that the government would allow for more imports via Pertamina, and the additional supply would arrive in seven days.
He noted that private fuel retailers have been given a 10 per cent bigger import quota this year compared to last year, but demand has exceeded that.
"The quota was provided normally, but there are circumstances where 110 per cent of the allocated quota is used up before the end of December. Therefore, the government decided to meet the request, but through a collaboration with Pertamina," Bahlil said.
He added that Pertamina will supply the companies with base fuel, without mixtures of additives, so private companies can do their own blending.
Bahlil said that Pertamina Patra Niaga, Pertamina's retail unit, still has around 7.52 million kilolitres of unused import quota, enough to supply the private retailers until the year-end.
