Operations at the state-owned Eastern Refinery Limited (ERL) in Chattogram have been suspended due to a severe shortage of crude oil, triggered by disruptions linked to the ongoing Iran-Israel war.
According to company officials, the refinery carried out its last processing operation on Monday afternoon. An ERL official, requesting anonymity, stated that refining had to be stopped after crude levels in storage tanks fell below the minimum operational threshold.
“Normally, a deadstock level of around 1.5 metres is maintained at the bottom of the tank. On Sunday afternoon, it dropped below 1 metre, making it unusable,” the official explained. The official further noted that at this level, impurities such as waste and slag increase significantly, posing a risk of damage to the refinery’s equipment. Considering these risks, operations were halted.
Another senior ERL official confirmed the development, citing technical and safety concerns as the primary reasons behind the shutdown.
Officials from the Bangladesh Petroleum Corporation (BPC) said a vessel carrying approximately 100,000 metric tonnes of crude oil remains stranded in the Middle East. The shipment has been unable to reach Bangladesh due to the closure of the Strait of Hormuz, a critical global oil transit route.
ERL typically refines around 1.5 million tonnes of crude oil annually, supplying various petroleum products to meet the country’s energy demand. BPC sources added that the ongoing supply disruption has raised concerns over potential fuel shortages if the situation persists.
Repeated attempts to contact ERL Managing Director Md. Sharif Hasnat and BPC Chairman Md. Rezanur Rahman for comments were unsuccessful.
