Czech refinery operations continue as planned despite oil supply crisis

The current oil crisis linked to the conflict in the Middle East has not affected the operations of Czech refineries. The Litvínov refinery continues to operate at full capacity and is supplying the market with the planned volume of fuels. Operations at the refinery in Kralupy nad Vltavou are currently limited due to a long-planned maintenance shutdown. Orlen Unipetrol spokesperson Pavel Kaidl told the Czech News Agency (ČTK). Oil supplies to Czechia are therefore continuing as planned.

The shutdown at the Kralupy refinery began on 17 March and is expected to last until early May. "A planned regular shutdown of production facilities is currently under way at the Kralupy nad Vltavou refinery, during which they undergo comprehensive maintenance and modernisation for legislative and operational reasons. The Litvínov refinery is operating at full capacity and supplying the market with the planned volume of fuels," Kaidl said.

Pavel Švagr, head of the State Material Reserves Administration (SSHR), also confirmed in recent days the uninterrupted supply of crude oil and other petroleum products to Czech refineries, as well as continuing fuel deliveries to filling stations. He recalled that the state holds emergency oil reserves sufficient for 89 days. In the event of a major supply problem, the authority is prepared, with government approval, to lend crude oil from state storage facilities to refineries, although this will apparently not be necessary for now.

Crude oil from the Persian Gulf is mainly purchased by Asian countries. According to analysts, Europe, which sources oil from more suppliers, is significantly less dependent, and no supply disruption is currently looming on the continent. However, given global oil prices, the rising cost of the commodity is being felt worldwide.

Oil prices rose sharply again on Thursday after falling on Wednesday. Concerns remain in the market about a longer-term disruption to supplies as a result of the conflict in the Middle East. North Sea Brent crude gained 5.7 percent, with its price exceeding $108 per barrel.

High oil prices have also driven fuel prices sharply higher in recent weeks. Since the end of February, when the war in the Middle East broke out, diesel in Czechia has risen by an average of 9.02 koruna to 42.12 koruna per litre. According to Thursday's data from CCS, the average diesel price was last at a similar level in November 2022. The increase for the best-selling Natural 95 petrol was more moderate, with it selling for an average of 38 koruna per litre, 4.39 koruna more than at the end of February.