Shell to Buy 100,000 Barrels From Pertamina as Indonesia Restocks Private Fuel Stations

A new cargo for stations short of gasoline

Shell has agreed to buy 100,000 barrels of gasoline from Indonesia's state energy company Pertamina, Deputy Energy and Mineral Resources Minister Yuliot Tanjung said, as private fuel retailers work to restore supplies after months of shortages. The purchase represents about 15.9 million litres of fuel and follows similar arrangements for BP and Vivo.

As of November 26, 2025, the agreement offers a concrete step toward replenishing Shell stations where certain gasoline grades have been unavailable. Yuliot confirmed the purchase and the fuel's transit to an agreed delivery point. No date was given for the restoration of normal gasoline availability across Shell's network.

Indonesia's government capped private retailers' fuel imports this year, then directed them to obtain additional supplies through Pertamina. That policy left many Shell, BP and Vivo outlets short of gasoline even while diesel remained available. Shortages spread from late August, and Shell adjusted operating hours and staffing as its supply difficulties continued.

Shell has said it wants to restore normal distribution while maintaining its procurement and quality standards. The task involves more than securing a cargo: the gasoline must meet agreed specifications, undergo inspection, be blended for the brand's products and reach individual stations.

BP has also purchased 100,000 barrels through Pertamina, with deliveries arranged in late October. Vivo has received a separate cargo of around the same size after an earlier shipment raised questions about ethanol content. Together, the purchases show how the government's new supply channel is beginning to refill private networks, although availability still varies by brand, gasoline grade and location.

How import limits became a supply problem

Indonesia ended Pertamina's legal monopoly in 2004, but the state company still dominates fuel imports and retail sales. Private operators offer motorists additional choices, particularly for gasoline sold without government subsidies.

The government limited private retailers' imports in 2025 to volumes tied to their previous sales. Their quotas allowed imports equal to 10 percent above the prior year's sales, a ceiling intended to prevent inventory imbalances. When demand grew faster than expected, some retailers exhausted that allowance well before the end of the year.

Private companies asked for more import capacity in June as their stocks tightened. The government subsequently allowed them to obtain extra gasoline through Pertamina, rather than bring in those additional cargoes independently. Energy officials described the arrangement as a way to maintain stable supplies and public access to fuel while giving private firms a route to secure gasoline sold without subsidies.

The mechanism operates as a single gate for additional imports: Pertamina procures the fuel, and private retailers receive supplies through the state company. Shipments began to flow after the ministry opened that route, but they arrived too slowly to prevent temporary stockouts at many outlets. Some stations sold only diesel for days while waiting for gasoline.

Indonesia's competition watchdog has warned that rigid import caps can reduce consumer choice and strengthen Pertamina's position. Authorities opened the additional supply channel before the end of the year, seeking to address shortages while keeping the import framework in place.

Why demand outran the private retailers' quotas

Private stations experienced a surge in demand during 2025 as more drivers sought gasoline from Shell, BP, Vivo and other operators. The increase accelerated after allegations that Pertamina had blended components of a lower grade into its gasoline with an octane rating of 92. Pertamina rejected the claim.

New requirements to register with a QR code when buying subsidised gasoline at Pertamina outlets also encouraged some motorists to turn to private brands. Those retailers focus on gasoline with higher octane ratings, sold without subsidies.

Industry data indicated that sales of gasoline sold without subsidies rose about 19 percent through the middle of the year. Annual sales of those grades by private companies were projected to increase by around 91 percent. The figures describe different measures: the first tracks growth across that category of fuel, while the second is a projection for private operators.

Pertamina's share of the gasoline market without subsidies slipped to roughly 85 percent, compared with about 89 percent in 2024. Using those approximate figures, private operators' combined share rose from about 11 percent to about 15 percent, a gain of four percentage points. Pertamina still supplied most of that market, but private networks were serving a larger share of customers.

The quota allowed private retailers a 10 percent increase over their previous annual sales, while their sales were projected to grow by around 91 percent. That gap explains why a retailer could attract more customers yet have too little permission to import the fuel needed to serve them. The extra supply route through Pertamina was intended to bridge that gap before the year ended.

What Pertamina will supply to private brands

Energy Minister Bahlil Lahadalia explained at a government briefing that Pertamina would procure base gasoline for private companies to blend according to their own brand and grade requirements. He said Pertamina would supply the companies with base fuel, without mixtures of additives, so they could do their own blending.

Base gasoline is refined fuel that meets an agreed octane rating, such as RON 92, before a retailer adds its own additive package. The octane rating describes the fuel's resistance to unwanted combustion inside an engine. The government's arrangement separates the procurement of that base fuel from the preparation of the finished branded product.

Private companies can add detergents that help keep fuel injectors clean, corrosion inhibitors or friction modifiers. Brands may also specify colours or dyes to identify their products. Those requirements help explain why retailers need more than an available volume of gasoline: they also need fuel suitable for their own blending process.

Pertamina's downstream unit had about 7.52 million kilolitres of unused import quota available in recent months, according to the energy ministry. A kilolitre is 1,000 litres, so that allowance represented about 7.52 billion litres of potential imports. A portion was expected to meet private retailers' needs through the end of the year.

The unused quota gives Pertamina room to arrange additional cargoes. Private operators submit the volumes they need to its retail unit, which then lines up supplies meeting the agreed technical specifications. The aim is to move fuel into their networks within days of its arrival at Indonesian ports.

Why ethanol and paperwork delayed early purchases

Vivo initially agreed to take part of a shipment containing 100,000 barrels, then hesitated when testing detected roughly 3.5 percent ethanol in the gasoline. That proportion was below Indonesia's regulatory ceiling for ethanol blending, but it did not match some private brands' requirements for premium grades.

Ethanol is a component that can be blended into gasoline. In this case, the issue was whether the offered cargo matched the buyer's product specifications. A retailer preparing a particular branded grade needs the incoming fuel to fit the formulation it intends to sell.

Vivo later received a separate cargo of around 100,000 barrels. The initial disagreement and subsequent delivery illustrate why the terms of a purchase need to cover fuel composition as well as quantity. Securing an import allowance is one step; agreeing on an acceptable shipment is another.

BP also sought a certificate of origin for an offered cargo to confirm that the gasoline did not come from a producer subject to sanctions. That document identifies where a product comes from and helps the buyer check whether its purchase meets procurement requirements.

Technical specifications and documentation questions slowed the first wave of restocking. They also helped clarify the conditions for later deals, including the need for suitable base gasoline, agreed testing and clear paperwork before a cargo could move into a private network.

How inspection fits into the restocking process

Energy officials have said that incoming cargoes offered to private operators undergo joint inspection. An independent surveyor checks the quantity and key specifications before delivery, giving the parties a shared basis for accepting the fuel.

The inspection process is central to private brands' efforts to maintain consistent quality. Shell has linked its return to normal distribution with maintaining procurement and quality standards, while other operators have relied on testing and documentation to address questions about individual shipments.

A corruption investigation involving Pertamina earlier in 2025 intensified public debate over gasoline quality. Pertamina denied wrongdoing and pledged greater transparency. The allegations concerning its gasoline also contributed to the shift in demand toward private stations.

Private retailers' growth depends on customers receiving the fuel they expect each time they refuel. Joint checks of incoming cargoes, followed by blending to each brand's requirements, are intended to support that consistency as supplies return. The government framework leaves the brands responsible for adding their own detergent and performance packages to the agreed base gasoline.

The steps from tightening stocks to new deliveries

The supply difficulties developed over several months, with requests for larger quotas preceding the widespread shortages. Shell's purchase follows earlier efforts to obtain more import capacity and resolve the conditions under which private brands would accept Pertamina's supplies.

• In 2024, Pertamina held roughly 89 percent of the market for gasoline sold without subsidies, providing the comparison for its roughly 85 percent share in 2025.
• In June 2025, private retailers requested extra import capacity as inventories tightened.
• Through the middle of 2025, sales of gasoline sold without subsidies rose about 19 percent, while private companies' annual sales were projected to increase by around 91 percent.
• From late August, shortages spread across private stations, and Shell adjusted operating hours and staffing.
• In late October, deliveries to BP were arranged following its purchase of 100,000 barrels through Pertamina.
• By November 26, Shell had agreed to purchase 100,000 barrels, and Vivo had received a separate cargo of around 100,000 barrels after its earlier specification dispute.

The staggered arrivals mean stations rebuild stocks in stages. Each company prioritises its own products and regions, so gasoline can return to some outlets while other locations or grades remain unavailable.

What 15.9 million litres means at the pump

Shell's 100,000 barrels equal about 15.9 million litres, using the conversion of 159 litres per barrel. For a private network that has run short of certain gasoline grades, that is a substantial addition to available supply.

A typical passenger car in Indonesia may take 40 to 50 litres for a fill. Dividing the cargo by those amounts gives about 397,500 fills of 40 litres or 318,000 fills of 50 litres. The shipment could therefore support several hundred thousand refuelling transactions once distributed, although actual purchases differ in size.

The volume can ease acute shortages and provide time for further cargoes to arrive. Restoring an entire private retail system across many cities requires continuing supplies as well as the distribution of this purchase.

BP's restocking after its purchase of 100,000 barrels and Vivo's receipt of a cargo of similar size have already helped replenish private supplies. Shell's agreement adds another shipment to that process. Drivers' access to gasoline will depend on where each retailer sends its fuel and which grades it prepares for sale.

National reserves and the competition debate

Pertamina has said its gasoline reserves cover about 18 to 21 days of national demand. Those buffers support the broader market while private networks deal with shortages at particular stations. National stock levels and the availability of a specific brand at a local outlet describe different parts of the supply system.

For the private retailers, the immediate challenge is coordination. Cargoes need to arrive on time, pass joint inspection and move efficiently to retail sites. The government's aim of dispatching fuel within days of arrival depends on those steps being completed.

Officials have framed the single gate approach as a way to keep supplies steady and avoid a scramble for limited import quotas near the end of the year. Policymakers describe it as a practical response to unexpected demand and documentation issues, giving private companies a workable route to obtain adequate volumes.

The competition watchdog's warning concerns the same arrangement from the customer's perspective: strict limits on private imports can narrow the choice of stations and reinforce the market position of the dominant supplier. Pertamina remains both the largest retailer and the channel through which its competitors secure additional imported gasoline.

Shell's agreement shows that the arrangement can move fuel toward private networks once purchase terms and testing are agreed. The immediate priority is to turn the new cargoes into dependable supplies at the pump while maintaining the specifications each brand requires.

Key Points

• Shell agreed to buy 100,000 barrels, about 15.9 million litres, of gasoline from Pertamina.
• Private retailers' 2025 import quotas allowed volumes 10 percent above their previous year's sales, while private sales were projected to grow by around 91 percent.
• BP purchased 100,000 barrels, with deliveries arranged in late October; Vivo received a separate cargo of around the same size.
• Pertamina will supply base gasoline without additives so private brands can blend it to their product requirements.
• The energy ministry said Pertamina's downstream unit had about 7.52 million kilolitres of unused import quota available in recent months.
• Early purchases were delayed by specification and documentation questions, including roughly 3.5 percent ethanol in a cargo offered to Vivo.
• Pertamina reported national gasoline reserves covering about 18 to 21 days of demand, while private stations rebuild stocks in stages.
• The competition watchdog warned that rigid import caps could reduce consumer choice and strengthen Pertamina's market position.