Is Eastern Refinery’s Oil Refining Capacity Sufficient for the Country

Currently, Bangladesh’s annual demand for liquid fuel stands at approximately 7 million metric tonnes. The country’s only state-owned crude oil refinery, Eastern Refinery Limited (ERL), can refine 1.5 million metric tonnes of crude oil per year. For the remaining refined oil, the country relies on imports, which places significant pressure on the economy. Eastern Refinery refines crude oil imported from Saudi Arabia and the United Arab Emirates, producing petrol, diesel, naphtha, jet fuel, and bitumen.

If the country’s oil refining capacity can be increased, it would alleviate economic pressure. To achieve this, plans have been initiated to construct Eastern Refinery-2, with a capacity of 3 million metric tonnes. However, even after its establishment, the country will continue to depend on imports.

A recent study revealed that refining crude oil domestically instead of purchasing refined oil could save approximately 9 to 10 dollars per barrel, which could be a significant boon for the national economy