C T Online Desk: Eastern Refinery Limited (ERL), the country’s sole state-owned oil refinery, is facing the risk of a temporary shutdown due to a severe shortage of crude oil.
The crisis stems from disruptions in global oil shipments caused by ongoing conflicts involving Iran, which has significantly affected crude supply routes. Tankers carrying crude oil have been delayed, creating uncertainty in the refinery’s operations.
According to ERL sources, the refinery had only about 23,000 tonnes of crude oil in stock as of March 31—enough to sustain operations for just seven days. Although the refinery has a daily processing capacity of around 4,500 tonnes, it is currently refining between 3,000 and 3,700 tonnes per day to conserve supply.
Refined petroleum products are distributed to consumers through the Bangladesh Petroleum Corporation (BPC).
Officials said two crude oil shipments totaling 2 lakh tonnes from Saudi Arabia and the United Arab Emirates were scheduled to arrive in March. However, delays in those shipments have triggered the current crisis.
The crisis has been exacerbated by geopolitical tensions in the Middle East. Iran has reportedly restricted movement through the strategic Strait of Hormuz, a vital route for global oil transportation. This has caused instability in the international energy market and is now impacting import-dependent countries like Bangladesh.
Despite the tensions, Iran has indicated that certain “friendly countries,” including Bangladesh, India, China, Russia, Iraq, and Pakistan, may still be allowed passage through the route under special considerations.
BPC data shows that in the 2024–25 fiscal year, ERL refined significant quantities of petroleum products, including diesel, furnace oil, petrol, kerosene, LPG, jet fuel, and bitumen. Bangladesh’s annual fuel demand stands at around 72 lakh tonnes, with approximately 92% met through imports.
Efforts are underway to secure alternative crude sources. ERL officials said they are exploring imports from countries such as Malaysia and Nigeria.
A crude oil tanker carrying around 1 lakh tonnes is expected to depart Saudi Arabia on April 21 and could reach Bangladesh by May 1 or 2, provided the situation stabilizes. Typically, shipments from Saudi Arabia take about 13 to 14 days to arrive.
Meanwhile, earlier shipments have been delayed or canceled due to the conflict. One tanker scheduled to depart in early March remains stuck at port, while another planned shipment from the UAE was also postponed.
Secretary of the Port Authority, Syed Refayet Hossain, told Dhaka Tribune, “On February 28, one lakh tons of unrefined oil was imported. Since the Hormuz Strait has been closed, no more ships carrying unrefined oil have arrived in the country after that.”
Deputy General Manager (Operations) of Eastern Refinery Limited, Muhammad Mamunur Rashid Khan, said, “Eastern Refinery was established considering the processing of crude oil imported from Middle Eastern countries such as the United Arab Emirates, Iran, and Saudi Arabia. Due to the current war, there are some difficulties in bringing crude oil-carrying ships. This problem will not last long. We hope the crisis will be resolved soon.”
“At present, efforts are underway to procure crude oil from alternative countries such as Malaysia and Nigeria. Several countries have already sent samples of crude oil. We have tested them and submitted reports,” he added.
