JAKARTA (Reuters) -Shell said it is adjusting operational hours and staffing levels at some of its gas stations in Indonesia as a result of supply shortages, as the government insisted they would not
Shell Modifies Staffing and Hours at Indonesian Gas Stations Due to Shortages
Impact of Fuel Shortages on Shell's Operations
JAKARTA (Reuters) -Shell said it is adjusting operational hours and staffing levels at some of its gas stations in Indonesia as a result of supply shortages, as the government insisted they would not be granted extra import quotas and should source fuel from the state-run Pertamina.
Staffing Adjustments
Shell and BP-AKR, the operator of BP's fuel stations, said they have experienced inventory shortages for some gasoline products since late August.
Government Regulations and Market Response
The market share of private fuel distributors, which sell only unsubsidised fuels, is small compared to those controlled by Pertamina.
Collaboration with Pertamina
Restrictions in the sales of subsidised fuel and a corruption probe into Pertamina have triggered a shift in demand towards Shell and BP, putting their own supplies under pressure.
The shortage has led to staffing adjustments at Shell, the company said.
"We are adjusting operational activities at the Shell gas station network while gasoline products are not fully available, including adjusting operating hours and the team assigned to serve customers," Shell said in a statement late on Tuesday.
It did not share how many workers were affected.
Energy minister Bahlil Lahadalia on Wednesday did not respond to questions regarding Shell's workers and reiterated that private fuel retailers have been given a 10% bigger import quota this year compared to last year.
"If you want more, please collaborate with Pertamina, because Pertamina represents the government," Bahlil told reporters.
The private retailers have not started buying from Pertamina yet, senior energy ministry official Laode Sulaeman said on Wednesday, as they conduct internal reviews.
(Reporting by Fransiska Nangoy, Bernadette Christina Munthe; Editing by David Stanway)
