Shell, BP Gas Stations Run Dry in Indonesia on Import Curbs

(Bloomberg) -- Shell Plc and BP Plc-branded gas stations in Indonesia have run low on fuel as supplies are curbed by import restrictions.

The three brands of gasoline sold by Shell in the country are unavailable at some locations until further notice, according to a statement on its website. The company — which accounts for a small part of Indonesia’s market — is coordinating with the country’s Energy Ministry to ensure fuel availability, it said.

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Indonesia’s imports of gasoline, which are regulated by government quotas, fell 22% year-on-year at the end of August, according to Kpler data. While the country does produce some crude from local fields, it’s a net oil importer, and a lack of refining capacity means that some petroleum products are shipped in from overseas.

Energy Minister Bahlil Lahadalia said private companies had requested larger quotas, Kompas reported, citing an interview. He encouraged them to purchase supplies from state-owned PT Pertamina, which dominates the country’s gasoline retailing, according to the report.

Meanwhile, the volume and frequency at which Pertamina has sought to procure gasoline from overseas for the remainder of the year has surged over the last two weeks, according to tender documents tallied by Bloomberg.

BP-branded stations are also facing shortages of some products, the Jakarta Post reported, citing an executive from their operator, PT Aneka Petroindo Raya. About 50 forecourts in Indonesia carry the British firm’s brand, according to a company document.

Earlier this year Shell agreed to sell its Indonesian gas stations and associated fuel distribution operations to a joint venture between Philippines-based Citadel Pacific Ltd. and Sefas Group.

(Adds Kpler data on gasoline imports in third paragraph)

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