Indonesia has moved to ease fuel shortages by allowing private retailers such as Shell and BP to import fuel through state-owned energy giant Pertamina.

Energy Minister Bahlil Lahadalia announced the policy shift on Friday, saying the government had agreed to private operators’ demands for more import volumes after weeks of scarcity at non-subsidized fuel stations.

Although Pertamina lost its monopoly in the retail market two decades ago, it has maintained a dominant role in supply. Restrictions and quotas placed on private refiners have often left their pumps dry, frustrating consumers and sparking complaints of unfair competition.

Earlier this week, Indonesia’s anti-monopoly watchdog (KPPU) concluded that current restrictions limit consumer choice and create an uneven playing field for private companies. That finding came after fuel shortages worsened in recent months.

Under the new arrangement, Pertamina will provide unblended fuel to private retailers, giving them flexibility to carry out their own blending before distribution. Lahadalia, flanked by executives from Shell and BP’s Indonesian units, said the decision reflects the government’s willingness to support private operators while ensuring Pertamina remains central to supply.

In a related development, Pertamina is exploring the option of importing oil products from the United States. Lahadalia has previously urged the state company to consider U.S. fuel imports despite logistical challenges, noting such a move could help balance Indonesia’s trade relations with Washington.

The policy marks a significant shift in Southeast Asia’s largest economy, where fuel distribution has long been tightly controlled. Industry analysts say the decision could improve supply reliability while giving private firms more room to compete.