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View all search resultsAnalysis: When Shell runs dry, Pertamina steps back in
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An employee fills a customer's vehicle on March 9, 2023, with fuel at a Shell gas station in Jakarta. (Antara/M Risyal Hidayat) (Antara/M Risyal Hidayat)
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hortages have gripped Indonesia once again, with Shell, BP and Vivo fuel stations running low in several regions. The fuel shortages have caused long lines at Shell, BP and Vivo stations as well as increased demand at state-owned Pertamina stations, despite scandals over low-quality fuel.
The contrast between empty pumps at foreign-owned stations and eroded trust in the national supplier highlights the fragility of fuel distribution and the difficult choices consumers face.
In response, Energy and Mineral Resources Minister Bahlil Lahadalia said the government had approved a 10 percent increase in fuel import quotas for private retailers in 2025. While this announcement may provide some relief, it offers little to address the current crisis. Shell and other private retailers need immediate allocations to keep their stations supplied, not just commitments for the future.
Bahlil has framed the current disruption as an opportunity for business-to-business collaboration, suggesting that private retailers could source supply directly from Pertamina. However, the reliance on the state-owned company feels like a step backward and a hindrance to market liberalization, for many.
The shortage has not been caused by a surge in demand. Indonesia’s economy grew 5.12 percent in the second quarter of 2025, but overall fuel consumption has remained relatively stable, with no sharp spike to explain the supply gap. The primary cause lies in recent regulatory changes. Until last year, import permits for private retailers were valid for 12 months. Since 2025, they expire after six months.
The shortened procurement period has disrupted logistics, forcing private companies to reorganize and adjust their infrastructure on a much shorter timeline. This challenge has proven difficult for many to overcome smoothly.
Recognizing this, the government has announced plans to conduct quarterly evaluations of the quota system. These reviews, which aim to stabilize supply, highlight the persistent imbalance between Pertamina and its competitors.
