Production at state-owned Eastern Refinery Limited (ERL) will remain suspended until at least May 5 due to a crude oil supply disruption linked to geopolitical tensions, forcing Bangladesh Petroleum Corporation (BPC) to rely more on higher-cost refined fuel imports to keep the domestic market stable.
The disruption began after the last crude shipment reached ERL on February 18, when the tanker Nordic Pollux carrying 100,000 metric tons of crude oil became stranded at Saudi Arabia’s Ras Tanura port amid the Iran-Israel-US conflict.
The refinery continued limited operations by rationing existing stock but halted production completely on April 13 as reserves were exhausted, officials said.
They added that no new crude shipment is expected before May 5, leaving the refinery closed for nearly three weeks.
To prevent a supply crunch, BPC has ramped up imports of refined petroleum products including diesel, octane, jet fuel and furnace oil.
According to officials, three to four fuel-laden vessels are arriving at Chattogram Port every week.
On April 14, three ships delivered a combined 66,000 metric tons of diesel and 11,000 metric tons of jet fuel.
Earlier, on April 8, shipments included 26,000 metric tons of octane and 25,000 metric tons of furnace oil from Malaysia.
BPC Deputy General Manager Finance Md Jahangir Kabir said the corporation is continuing both refining and direct imports of finished petroleum products to ensure uninterrupted supply.
“Even if there is no output from the domestic refinery, there should be no shortage in the market as refined fuel imports remain steady,” he said.
He acknowledged that importing refined fuel is significantly more expensive than processing crude oil domestically.
Data from the National Board of Revenue shows fuel import costs in the first nine months of the 2025-26 fiscal year increased by 28.82 per cent year on year, reflecting higher reliance on costly refined products.
Around 80 per cent of the country’s fuel demand is now met through imported finished products, with diesel alone accounting for nearly 69 per cent, said BPC General Manager Commercial and Operations Md Murshed Hossain Azad.
Efforts are underway to resolve the crude oil supply disruption.
Bangladesh Shipping Corporation Managing Director Commodore Mahmudul Malek said diplomatic channels have been engaged to bring back the stranded Nordic Pollux through the Strait of Hormuz.
The issue has been raised through the Ministry of Foreign Affairs and communicated to Iranian authorities via their embassy, he said.
In parallel, a fresh crude oil shipment of 100,000 metric tons sourced from Yanbu Commercial Port in Saudi Arabia is scheduled to be loaded on April 20 and is expected to reach Chattogram by May 5.
Yanbu’s location near the Red Sea, outside the Strait of Hormuz, reduces disruption risks along that route.
Authorities said the situation remains under control.
Energy and Mineral Resources Division Joint Secretary Monir Hossain Chowdhury said there is sufficient stock to meet demand for the next two months.
“There will be no fuel crisis in April or in the coming months,” he said at a briefing at the Secretariat on April 15.
He said the country currently holds 101,385 metric tons of diesel, 31,821 metric tons of octane, 18,211 metric tons of petrol, 77,546 metric tons of furnace oil and 18,223 metric tons of jet fuel.
Industry insiders said the shutdown has significant implications as ERL supplies 20 to 25 per cent of the country’s total fuel demand.
Established in 1968, the refinery has a daily refining capacity of around 4,400 metric tons of crude oil.
Officials also said another 200,000 metric tons of crude oil is expected to be imported in May from Saudi Arabia and European sources, which should help restore normal refinery operations.
