Name: Shell and BP struggle to secure Indonesian fuel supply after scandal
Uploaded: 2025-12-22T14:52:48.780Z
Duration: 2 min 45 s
Description: Private gas stations in Indonesia, like Shell and BP, had run dry for more than three months. No gasoline was available at any of their stations, forcing consumers to buy fuel from the state-owned oil company.

Private gas stations in Indonesia, like Shell and BP, had run dry for more than three months. No gasoline was available at any of their stations, forcing consumers to buy fuel from the state-owned oil company.

Jakarta

In Jakarta, Indonesia, drivers have experienced long waits at fuel stations as private providers Shell and BP have been unable to import gasoline due to government restrictions. The shortage began after a fuel-mixing scandal at state-owned Pertamina led many consumers to switch to private stations, but the government did not increase import quotas for these companies.

Instead, Shell and BP were required to purchase fuel from Pertamina, reducing competition and raising concerns about quality and consumer choice. The Indonesian government has stated that private stations will be allowed to resume independent fuel imports starting in 2026, but experts warn that unless quotas are adjusted to meet demand, shortages may continue.

Shell and BP struggle to secure Indonesian fuel supply after scandal

In Jakarta, drivers have to sit in line for nearly an hour just to fill up. For months now, the only source of gasoline has been the state-owned provider, Pertamina. At private stations like Shell and BP, the pumps haven't moved in months. Once they ran out of supplies, they were not allowed to import fresh fuel. At times like this, I have no choice but to buy fuel from Pertamina, even though the quality is not good. I usually buy fuel from Shell, but right now they're completely out. I feel my car's performance hasn't been good since I switched to Pertamina's fuel. This all started after a fuel-mixing scandal at Pertamina pushed many drivers to switch to Shell and BP. Demand at private stations suddenly exploded, but Indonesia did not increase their import quota. Instead of letting Shell and BP import fresh fuel from abroad, the government told them to buy it from Pertamina, their state-owned competitor. By stopping private stations from importing fuel, competition has basically disappeared. And without competition, quality and consumer choice suffer. The government rejects this. It says the goal is to keep fuel prices low, without monopolizing the market. Starting in 2026, private stations will resume importing fuel on their own. There's no monopoly here. If we were monopolizing, private stations wouldn't exist. And as for the government involvement, the law requires it. Anything that affects people's basic needs, in this case energy, must be controlled and managed by the government for the greatest benefit of the public. But experts like Fabi Tomiwa at the IESR Energy Reform think tank argue this shortage shows what happens when one supplier dominates the market. Quota rules should never create shortages. Quotas are necessary, but the system should be flexible and rational. If private stations can show that their demand has increased, they should be allowed to import more. And if the supply ends up being excessive, next year the import quota can simply be adjusted. BP and Shell have now given in and are selling fuel they had to buy from Pertamina, just to reopen some of their pumps. Next year, fresh quotas will allow private stations to import their own fuel again. But unless those quotas grow with demand, the same problem may return, and so could the queues.

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