Anti-trust agency: Indonesia's unsubventioned fuel policy may harm consumers and create unfair practices

The Indonesian anti-trust agency said that its import restrictions on fuels sold by private companies without subsidies have reduced consumer options and could lead to an unfair competition environment.

Shell and BP AKR, which operates BP's petrol stations, have reported that they are experiencing inventory shortages of some gasoline products. This has been happening since late August.

Shell has made a number of other products.

Adjustments to operational staffing

Gas stations are located all over the country.

Private fuel distributors who only sell unsubsidised petrol have a small market share compared with those owned by Pertamina.

The KPPU (locally known as the KPPU) said that the fuel restrictions had led to a "loss of choice for consumers in terms of non-subsidised petrols" and strengthened Pertamina’s dominance of the market.

The agency stated that the policy could create unfair competition in the form market foreclosures or discrimination.

The policy should be reviewed periodically to ensure that fair business practices are maintained.

Shell and BP are under pressure due to the shift in demand caused by restrictions on the sale of fuel subsidised and a corruption investigation into Pertamina.

The KPPU findings were not immediately commented on by a spokesperson from the Indonesian energy ministry.

Bahlil lahadalia, Indonesia’s energy minister, announced earlier that private fuel retail stores had received a 10% increase on import quotas compared to the previous year. He encouraged the companies to "collaborate with Pertamina". (Reporting and editing by David Stanway, Stanley Widianto; Fransiska Christina, Bernadette Christopher, Dewi Kurniawati)

(source: Reuters)