Eastern Refinery operating at limited capacity, but no fuel crisis: Ministry

Due to the closure of the Strait of Hormuz following the war in the Middle East, crude oil imports have been disrupted. As a result, the country's only refinery, Eastern Refinery Limited (ERL), is currently operating at limited capacity or 'low feed'. However, the Ministry of Power, Energy and Mineral Resources has assured that there will be no fuel crisis in the country as imports of refined fuel oil from alternative sources have been strengthened.

The information was provided in a press release on Wednesday, April 15.

It stated that ERL primarily refines Arabian Light Crude from Saudi Aramco and Murban Crude from ADNOC of the United Arab Emirates. Through this, it produces approximately 1.5 million tonnes of fuel oil annually, which is about one-fifth of the country's total demand. In the 2024-25 fiscal year, ERL supplied approximately 15.44 per cent of the country's total diesel demand and 11.92 per cent of petrol demand.

The release stated that following the outbreak of war in the Middle East on February 28 this year, a total of 300,000 tonnes of scheduled crude imports for March and April have been disrupted. While one Arabian Light Crude cargo was loaded in March, it has been unable to cross the Strait of Hormuz due to security risks and is currently waiting at Ras Tanura port. The supplier has declared 'force majeure' for the second consignment of Murban Crude.

The government has taken several steps to manage the situation, the release added. The 100,000 tonnes of crude scheduled for April is expected to arrive at Chattogram port via alternative routes by May 2-3. Saudi Aramco has been requested to supply an additional 100,000 tonnes of Arabian Light Crude in May, and cabinet approval has been obtained to import an additional 100,000 tonnes of crude through direct purchase to meet emergency demand. Currently, two of ERL's four units are operational, while the other two are under maintenance.

The energy ministry said although the global situation has created temporary pressure on crude supply, the country's fuel supply system will remain normal, and there is no reason for public concern.