Hanoi (VNA) – Indonesia plans to slash fuel imports fr🌱om Singapore♍ and pivot to supplies from the US and the Middle East, in a move that analysts see as a bid to reduce its dependence on the neighbouring city state and gain a strategic advantage in trade talks with the US.

Earlier this month, Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia said that Indonesia could redirect up to 60% of its fuel imports away from Singapore over the next six months as part of a broader diversification strategy. Bahlil said that it is not only a matter of price but also geopolitical issues and Indonesia needs to have a balance with other countries. At the same time, Indonesia aims to progressively reduce imports from Singapore to zero. The minister criticised Singapore's pricing practices, arguing that despite its proximity, the city state sell fuel to Indonesia at prices similar to those offered to buyers in the Middle East. Despite not producing crude oil, Singapore is a major refining hub and a key supplier of petroleum products across the region. More than half of Indonesia's oil imports now come from the city state, as declining output has left it unable to meet domestic demand. According to data from government agency Enterprise Singapore, between January and April, Singapore supplied Indonesia with more than 54,000 barrels of gas oil and 8,300 barrels of jet fuel per day. Analysts pointed out that while Indonesia is a crude-oil producer, its refining capacity - stuck at around 1.1 million barrels per day - is insufficient to meet its growing energy demands. This shortfall has made fuel imports essential, particularly for transport and industry./.