Fuel reserves ensure no crisis for at least two months: Energy Division official

The country will have no fuel crisis at least over the next two months due to having sufficient reserves of refined petroleum products like diesel, petrol, octane and jet fuel, Joint Secretary of the Energy Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) Monir Hossain Chowdhury told newsmen on Wednesday.

“We have 101,385 tonnes of diesel, 31,821 tonnes of octane, 18,211 tonnes of petrol, and 77,546 tonnes of jet fuel in reserve,” he said.

More refined petroleum products are coming into the country from different sources, he said.

Mr Chowdhury was briefing newsmen at the secretariat on Wednesday afternoon.

The state-run Eastern Refinery Ltd (ERL) is running at low feed due to scarcity of its raw material -- crude oil – amid the persistent Middle East crisis and restrictions on the movements of vessels through the Straits of Hormuz, he said.

The government has ramped up import of refined petroleum products as a backup to meet the domestic fuel demand, the EMRD official said.

Clarifying the reason for lower capacity, he said, scheduled crude oil shipments of 200,000 tonnes in March and 100,000 tonnes in April could not be delivered.

A Saudi vessel carrying 100,000 tonnes of Arabian Light crude remains stranded at Ras Tanura port as it could not cross Hormuz due to security risks.

Another shipment from the United Arab Emirates was suspended altogether, he added.

However, the government has secured alternative arrangements and a vessel carrying 100,000 tonnes of Arabian Light crude via a different route and is expected to reach Chattogram port between May 2 and 3, he said.

The government has requested Saudi Arabia to supply an additional 100,000 tonnes of crude oil in May.

The cabinet committee on government purchase also approved direct purchase of another 100,000 tonnes of crude oil, the EMRD official said, spelling out the government's steps to keep the ERL operational.

The ERL typically refines 1.5 million tonnes of crude oil annually, meeting about 20 per cent of national demand.

During the previous fiscal year 2024–25, the ERL provided around 15 per cent of diesel, and around 12 per cent of petrol consumed across the country.

The ERL did not provide any octane last year, according to EMRD data.

The refinery also produces furnace oil, kerosene, and bitumen as by-products, the official added.

Regarding price adjustment, the EMRD official explained that fuel prices are adjusted monthly.

Future prices will be determined on prevailing market conditions, he said.

Asked about long queues in front of petrol pumps, the official clarified that such crowding is not occurring outside the capital.

People are staying in the queue on a panic-buying spree, he said.

Industrial demand for diesel is being met without shortages, the official said.

Besides, private importers have been allowed to bring in 1.4 million tonnes of fuel to stabilize the market further, he added.

The EMRD has urged the countrymen not to worry, given the existing reserve supply situation of petroleum products across the country.

azizjst@yahoo.com