APSN Banner

Shell becomes sought after following Pertamina's adulterated fuel scandal

Source
Tempo - March 2, 2025

Putri Safira Pitaloka, Jakarta – In the past few days, fuel scarcity at several Shell Gas Stations (SPBU) has been in the spotlight. This is suspected to be the effect of alleged adulterated fuel scandal involving Pertamina.

This scarcity raises significant questions about the stability of fuel supply in Indonesia, especially after the scandal involving Pertamina. Consumers have begun to shift to Shell, seeking a more stable alternative even though several gas stations experience supply shortages.

The scarcity of fuel supply at Shell gas stations is evident in several locations, such as Jalan Fatmawati, Cilandak, South Jakarta, and Jalan Menteng Raya, Central Jakarta.

At several Shell gas stations, all types of fuel, from RON 95, RON 98, to CN51 diesel, are not available at all. This has caused difficulties for drivers, including online motorcycle taxi drivers, to refuel their vehicles.

As reported by Antara, President Director of Shell Indonesia, Ingrid Siburian explained that this scarcity is caused by delays in the supply chain that cannot be fully controlled by the company. However, Shell is making efforts to redistribute and resolve the issue as soon as possible.

In addition to fueling, other services at Shell gas stations continue to operate, such as Shell Advance MotoCare Express workshop and Shell Select outlets. This slightly alleviates the complaints of consumers who can still use non-fuel services.

"The delay is due to obstacles in the supply or supply chain. However, the obstacles are conditions beyond our control because we can only focus on things that we can control," said Ingrid during a Hearing with the House of Representatives Commission XII in Jakarta on Wednesday, February 26, 2025.

The impact of Pertamina scandal on Shell

The issue of fuel emerged shortly after the blending scandal involving Pertamina. However, if traced further, fuel scarcity at private gas stations has been occurring from late January to early February 2025.

At that time, the Minister of Energy and Mineral Resources, Bahlil Lahadalia, responded by denying any obstacles in procurement and distribution.

According to Bahlil, if there is a scarcity, it is most likely caused by technical issues, such as delays in fuel delivery by the tanker ships. He also explained that the Ministry of ESDM has granted permission to private oil and gas companies to import and distribute fuel since January 2025.

"There is no problem," said Bahlil when met at his office in Jakarta on February 3, 2025.

Bahlil then compared the fuel supply conditions at private gas stations with those at Pertamina. He stated that the supply at Pertamina gas stations remains normal and consumers do not have difficulty obtaining fuel.

"This means there are no issues for the public's consumption," he said.

Response from energy analysts

Several energy analysts, including economist Nailul Huda, mentioned the potential conflict of interest between the regulator and the operator, as private gas stations need to obtain fuel import permits from the Ministry of ESDM, which is also related to Pertamina, the main fuel provider in Indonesia.

Although import permits were issued in January, the time-consuming distribution process resulted in fuel shortages at private gas stations. Nailul argued that the Ministry of ESDM should accelerate the issuance of import permits when supplies are running low.

Furthermore, there are differences in the treatment between Pertamina and private companies in terms of licensing. Pertamina finds it easier to obtain permits for distributing subsidized fuel, while private companies have to meet various requirements for distributing non-subsidized fuel. The ESDM regulation also applies a risk-based licensing system, making the process stricter for private companies.

Meanwhile, Komaidi Notonegoro from the Reforminer Institute, argued that the fuel scarcity is more a stock management issue at the beginning of the year.

Private companies like Shell and BP often rearrange stocks to align with the annual budget, depleting old stocks before new products can be distributed.

Shell's efforts to restore supply

To address this scarcity, Shell Indonesia is coordinating with relevant ministries and endeavoring to expedite the distribution of fuel products to affected gas stations. However, this takes time to prepare for a return to normal supply.

Ingrid Siburian stated that Shell had also obtained import approval for fuel supply at the end of January 2025. In the future, the company is committed to maintaining the quality and availability of fuel supply throughout their gas station network.

"We obtained the commodity balance on January 20, 2025, and our import approval was obtained on January 23, 2025. However, when we obtained that commodity balance, about 25 percent of our gas stations had experienced a stock out for several variants," she said.

Nevertheless, the scarcity of fuel supply has had a significant impact on consumers. Several motorcycle taxi drivers complained about the difficulty of finding fuel at private gas stations, and have started to seek alternative fueling options.

Meanwhile, consumers remain skeptical of Pertamina gas stations, which are considered dishonest in adulterating fuel. This situation is indeed a major concern for Shell, which must promptly address this issue to not lose consumer trust.

– Riani Sanusi Putri and Sukma Kanthi Nurani contributed to the writing of this article.

Source: https://en.tempo.co/read/1981505/shell-becomes-sought-after-following-pertaminas-adulterated-fuel-scanda

Country