The country’s only state-owned refinery, Eastern Refinery Limited (ERL), is operating at reduced capacity due to disruptions in crude oil imports linked to the ongoing Middle East conflict, the Energy Ministry said on Wednesday.
In a statement, the Ministry of Power, Energy and Mineral Resources said the country’s overall fuel supply would remain stable as imports of refined petroleum products are being increased from alternative sources.
The press release said that the country's only fuel oil refining company, Eastern Refinery Limited (ERL), mainly imports Arabian Light Crude from Saudi Arabia's state-owned company Saudi Aramco and Marban Crude Oil from ADNOC of the United Arab Emirates and refines it. Through this, about 1.5 million tons of fuel oil is produced annually, which is about one-fifth of the country's total demand.
According to the Energy Department, the total diesel demand in the country in the 2024-25 fiscal year was 47 lakh 42 thousand tons, of which 7 lakh 32 thousand 230 tons, or about 15.44 percent, were supplied from ERL. At the same time, 11.92 percent of the total petrol demand was supplied from ERL.
In the 2024-25 fiscal year, the demand for petrol was 4 lakh 89 thousand tons, of which 58 thousand 309 tons were supplied from ERL. In addition, the notification stated that a significant portion of furnace oil, kerosene and bitumen are available from ERL as by-products.
It also said that the closure of the Strait of Hormuz after the war in the Middle East started on February 28 this year disrupted the scheduled import of a total of 3 lakh tons of crude oil in March and April.
Among them, a cargo of 100,000 tonnes of Arabian Light Crude scheduled for March was completed, but could not cross the Strait of Hormuz due to security concerns and is currently at Rastanura Port. The supplier of the second parcel of Murban Crude (100,000 tonnes) for the same month has declared force majeure.
The Ministry of Energy said that the 100,000 tonnes of Arabian Light Crude scheduled for April is expected to reach Chattogram Port by May 2-3 using an alternative route after loading on April 20.
A request has been made to Saudi Aramco for the supply of an additional 100,000 tonnes of Arabian Light Crude in addition to the 100,000 tonnes of Murban Crude in May, which is still awaiting approval.
The notification said that the cabinet approval has been obtained to import another 100,000 tonnes of crude oil through direct purchase to meet the urgent demand. The ERL has been kept operating in low-feed mode as the scheduled crude oil has not reached the port on time. Out of the company's four units, two are under maintenance, while the remaining two are operational.
However, the government has intensified the import of refined fuel oil to deal with the situation. In addition to regular imports, initiatives have been taken to purchase directly from alternative sources so that there is no shortage in supply.
The Ministry of Energy says that despite the temporary pressure on crude oil supply due to the global situation, the country's fuel supply system will remain normal and there is no reason for public concern about this.
Bd-pratidin English/TR
