Indonesia’s Bali hit by fuel crisis as huge queues form at petrol stations

Motorists have been left queuing for hours at petrol stations across Indonesia’s resort island of Bali in recent days amid reports of a crippling fuel shortage.

Long queues have been spotted all around the island, including in the capital Denpasar, Badung and Tabana, according to the Bali Post.

On Tuesday, Bali Governor I Wayan Koster stressed that there was enough fuel to go around, suggesting that panic buying might have caused the shortages at the pumps.

“People need to be patient because the depots have more than enough fuel to meet demand,” he said, as quoted by the Jakarta Globe, adding: “The rate at which fuel flows to gas stations is not keeping pace with demand.”

The crisis was not only hurting local businesses but also disrupting the plans of thousands of Australian holidaymakers, Yahoo News reported.

“This morning, my wife lined up at 4.30am and waited for 2½ hours before finally being able to refuel. It’s crazy,” one tourist said, as quoted by Australian news outlet 7news.

Earlier, local politician I Made Rai Warsa had pointed the finger at Pertamina, telling the Bali Post that the state-owned oil giant “must be sensitive to the situation on the ground”.

“Be honest about fuel availability,” the member of the provincial-level parliament was quoted as saying on Monday.

Government official Ida Bagus Setiawan, head of Bali’s Manpower and Energy and Mineral Resources Agency, responded that Pertamina was doing what it could to ensure a steady and uninterrupted supply.

He further urged the public to use fuel wisely, given the current “global geopolitical situation”, and told the Bali Post that the local government was also encouraging the use of electric vehicles.

Governor Koster on Tuesday said he expected the shortages to ease by Wednesday, urging residents to remain calm and also calling on Pertamina to ensure there was enough fuel.

The company had initially allocated 2.2 million litres (581,000 gallons) of fuel per day to Bali, he told the Jakarta Globe.

Pertamina confirmed to the Bali Post that it was closely monitoring fuel stocks, with a spokesman pointing to the recent arrival of a ship carrying 18 million litres (4.8 million gallons) of government-subsidised RON90 petrol known as “Pertalite” as well as 2.5 million litres of “Pertamax” – a higher octane, non-subsidised petrol – “to meet the need of the Balinese people”.

Globally, oil prices have been rising again in recent weeks amid a flare-up in attacks in the ongoing US-Israel war on Iran.

Benchmark Brent crude climbed above US$106 barrel after dipping slightly on Tuesday, Bloomberg reported, while West Texas Intermediate advanced towards US$95.

Brent has surged in price by more than 70 per cent this year amid conflict in the Middle East, which has roiled energy markets and throttled exports from the Gulf – a key oil producing region.