BP Indonesia imports fuel from Pertamina to replenish after a shortage, the company reports.
BP's Indonesian fuel station operator said that it imported base fuel through a unit of Indonesian state energy company Pertamina. This was to replenish supplies following a shortage which has been plaguing private retailers in Southeast Asia’s largest economy.
BP Indonesia, BP-AKR and Shell have both reported that they are experiencing inventory shortages of certain gasoline products. This has been happening since late August.
BP-AKR stated that it imported base fuels for some of its gasoline via Pertamina Patra Niaga, the retail unit of Pertamina. The government had given the order.
The company stated that the purchase of imported base oil through a government-set procedure was a temporary measure... which BP AKR took carefully and responsibly. It added that the imports were a sign of its long-term commitment to Indonesia.
Shell announced separately on Friday that the talks with Pertamina Patra Niaga are still ongoing.
Pertamina Patra Niaga, as well as the Indonesian energy ministry, did not respond immediately to a comment request.
Shell and BP AKR asked for additional gasoline import quotas after a surge of demand in June, according to company executives who spoke before the parliament.
Indonesia's Energy Ministry then sent a letter to private retailers in July, limiting their gasoline imports for 2025 at 10% more than what they had sold each other last year.
According to the government, this limit was set in order to maintain a balanced commodity account.
Last month, the government instructed private companies that they should import via Pertamina. Pertamina agreed to import base gasoline, which is not dyed or mixed up with additives.
Pertamina's deal with retailer Vivo failed because the fuel contained ethanol. BP-AKR asked Pertamina for a certificate of the origin to prove that it wasn't sourced from sanctioned manufacturers, but Vanda Laura, BP-AKR head, said it hadn't been provided.
Pertamina is the leader in retail fuel sales, despite Indonesia ending its monopoly formally in 2004.
Due to the restrictions on fuel sales and a corruption investigation into Pertamina, there was a shift in demand to privately run petrol stations. (Reporting and editing by David Stanway; Additional reporting by Bernadette Christopher; Reporting by Stanley Widianto, Dewi Kurniawati)
(source: Reuters)