Special Correspondent ; CHATTOGRAM – For the first time in its 57-year history, Eastern Refinery Limited (ERL), the country’s sole state-owned oil refinery, is on the verge of a total shutdown. Due to a severe shortage of crude oil triggered by Middle East conflicts, operations are expected to cease by April 10, 2026, and may remain suspended for at least 25 days.
The Crisis: Empty Pipelines
Over the last 35 days, no vessels carrying crude oil have arrived at Chattogram Port. ERL currently holds only 20,000 tons of usable crude, forcing a reduction in daily production from 4,500 tons to 3,200 tons.
The next scheduled shipment of 100,000 tons is not expected until May 1. Even after its arrival, lightering the cargo to the refinery will take another five days, leaving a critical gap in domestic production.
BPC’s Contingency Plan
Despite the refinery’s looming halt, the Bangladesh Petroleum Corporation (BPC) reassures that there is no immediate threat of a fuel crisis for consumers.
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Octane & Petrol: Supplies remain stable. Currently, there is enough Octane to last three months. Local condensate fractionation plants continue to meet 100% of Petrol demand.
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Diesel: While ERL provides about 1/6th of the nation’s diesel, BPC has ramped up direct imports. Two ships carrying 31,300 tons of diesel arrived from Malaysia and Singapore last weekend, with 300,000 more tons expected throughout April.
Infrastructure Concerns
ERL processes approximately 1.5 million tons of fuel annually, accounting for 20% of the national demand. While direct imports can fill the gap for Diesel and Octane, experts are concerned about the supply of Naphtha, a byproduct of ERL essential for the local fuel-blending process.
The Road to Recovery
A vessel named “MT Nordic Polux,” carrying 100,000 tons of crude, is currently stuck in the Strait of Hormuz. Another 100,000-ton shipment is scheduled to load at Saudi Arabia’s Yanbu Port on April 20. BPC officials expect full-scale refining to resume in the first week of May once these shipments are processed and quality-tested.