The government is racing to secure crude oil as the ongoing war in the Middle East disrupts key shipments, raising concerns about the country’s fuel security and highlighting the fragility of its import-dependent energy system.
The country relies on Eastern Refinery Limited (ERL) in Chattogram – its only state-owned refinery – to process roughly one-fifth of domestic fuel demand from Middle Eastern crude.
A shipment from Saudi Arabia, scheduled to depart on 12 March through the strategically vital Strait of Hormuz, has been derailed after Iran largely closed the waterway due to the conflict.
Meanwhile, a consignment from Abu Dhabi remains in limbo. Officials expect clarity within days, but the uncertainty has already prompted contingency planning at the highest levels.
Officials said that as a precaution, Bangladesh has begun preliminary efforts to source crude from Nigeria via China, a complex and unconventional route that underscores the urgency of the situation.
“We are working to offset the cancelled Saudi shipment and the uncertainty surrounding the Abu Dhabi consignment by sourcing Nigerian crude via China,” said Tajul Islam, GM at ERL. “If successful, it will significantly reduce supply risks.”
According to officials, some relief is expected in mid-April, when a vessel carrying 100,000 tonnes of crude from Saudi Arabia’s Yanbu Port via the Red Sea is due to arrive. At the same time, BPC is exploring the transfer of 100,000 tonnes of crude from a stranded vessel to another ship for delivery.
Meanwhile, Bangladesh Petroleum Corporation (BPC) is importing two tankers of octane from Singapore, expected to arrive on 18 April, to ease short-term shortages. While the move provides temporary relief for petrol and octane, it does little to address deeper structural vulnerabilities tied to crude imports and diesel demand.
ERL, the country’s only state-owned refinery with an annual capacity of 1.5 million tonnes, currently holds enough crude to sustain operations only until 6 April. The facility produces roughly 4,400 tonnes of fuel daily, including diesel, kerosene, petrol, octane, and jet fuel.
Petrol and octane account for about 11% of production, crucial for the nation’s transport sector.
However, ERL meets only a fraction of Bangladesh’s annual 7-7.5 million tonnes fuel demand, leaving the country heavily reliant on imported refined products, particularly diesel. Any disruption in crude supply threatens not only domestic refining but also the broader fuel import system.
Senior BPC officials have sought to reassure the public. “There is no shortage of fuel at this moment. Stocks are stable, and imports are continuing as per schedule,” said Morshed Hossain Azad, General Manager (Commerce and Operations).
Yet long queues at petrol stations reflect growing public anxiety, driven more by panic buying than actual shortages. No rationing measures have been introduced, and supply remains consistent with last year’s levels.
“We have neither reduced fuel supplies nor implemented any rationing. Distribution is exactly the same as this time last year, so it is puzzling why petrol stations are crowded,” Azad added.
The real risk lies upstream. The Middle East, which supplies the bulk of Bangladesh’s crude and refined fuel, remains embroiled in heightened geopolitical tension.
The Strait of Hormuz, through which nearly a fifth of the world’s oil passes, is particularly vulnerable. Any disruption – whether due to conflict, shipping risks, or strategic posturing – can have immediate ripple effects on import-dependent countries like Bangladesh.
Bangladesh’s reliance on a single refinery and limited supply routes leaves it exposed. Government sources say officials are balancing public reassurance with urgent efforts to secure supplies. The coming days, particularly the fate of the Abu Dhabi shipment, could prove decisive.
