JAKARTA (Reuters) – Indonesia will allow private fuel retailers, such as Shell and BP, to import more gasoline through state energy firm Pertamina as their petrol stations are running dry, the energy minister said on Friday.
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.
Import restrictions on unsubsidised fuel limit consumer choices, contributing to shortages, and may be creating an unfair business practice, Indonesia’s antitrust agency said on Thursday.
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, Minister Bahlil Lahadalia said on Friday the government would allow for more imports via Pertamina and the additional supply would arrive in seven days.
Private fuel retailers have been given a 10% bigger import quota this year compared to last year, but demand has exceeded that, Bahlil said.
“The quota was provided normally, but there are circumstances where 110% of the allocated quota is used up before the end of December,” he said.
“Therefore, the government decided to meet the request, but through a collaboration with Pertamina.”
Pertamina will supply the companies with base fuel, without mixtures of additives, so private companies can do their own blending, Bahlil added.
The energy ministry said 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. (This story has been corrected to say ‘unsubsidised,’ not ‘subsidised,’ in paragraph 3)
(Reporting by Fransiska Nangoy and Stanley Widianto; Editing by Kim Coghill)
