Eastern Refinery continues production despite not operating at full capacity due to raw material shortage

Staff Report: PNN

Due to a temporary shortage of raw materials, the country’s only state-owned oil refinery, Eastern Refinery Limited (ERL), is not operating at full capacity, but it has not been shut down, the government has said. The company is currently continuing production on a limited scale.

In a press conference held on Wednesday, Joint Secretary of the Ministry of Energy Monir Hossain Chowdhury explained the situation in detail. He said that due to the international situation, crude oil shipments have not arrived on time, causing a temporary reduction in production.

According to ministry information, the delay in crude oil shipments scheduled for March created this situation. However, the government had already taken alternative plans to deal with potential shortages. Accordingly, refined fuel imports are continuing, and fuel is also being procured through direct purchase when necessary.

The government said that ERL supplies a portion of the country’s total fuel demand, particularly around 15% of diesel and 11% of petrol. This shortage can be easily covered through imports, officials said.

Currently, two of the four units of the refinery are closed for maintenance, while production continues in the remaining two units. Therefore, there is no situation of complete shutdown.

ERL mainly imports crude oil from Middle Eastern countries and produces around 1.5 million tons of fuel annually. A large portion of the country’s total demand is met through imported refined fuel.

The Ministry of Energy said that all necessary preparations have been taken to maintain fuel supply in the market under the current situation, and consumers will not face any shortage.