Binh Son Refining and Petrochemical Company (BSR), which operates the refinery situated in the central province of Quang Ngai, said due to Covid-19 outbreaks, fuel demand has dropped.

On August 3, BSR reduced production, but still expects to add 100,000-120,000 cubic meters (600,000-720,000 barrels) of petrol to its inventories this month.

With little space left in its warehouses, the refinery faces a risk of shutdown, BSR said.

Quang Ngai Province authorities said the country continues to run up big petroleum products import bills, causing difficulties for BSR and other refineries, and urged the government to prioritize the use of locally produced oil and petroleum products.

Dung Quat has an annual capacity of processing 6.5 million tons of crude oil.