Eastern Refinery Faces Temporary Shutdown Risk Due to Crude Oil Shortage

Staff Report: PNN

The country’s only state-owned oil refinery, Eastern Refinery Limited (ERL), may face a temporary shutdown due to a severe shortage of crude oil. Experts attribute the crisis to disruptions in oil imports caused by ongoing Middle East tensions and conflicts in the Hormuz Strait.

Monir Hossain, Joint Secretary of the Energy Division, stated that crude oil shortages may begin by the second week of April, potentially forcing ERL to suspend production temporarily.

According to sources, as of Tuesday morning, the refinery had only 23,000 tons of crude oil in stock—enough for a maximum of seven days. Given the current situation, production could halt by April 7. The last crude oil shipment arrived in the country on February 18. Since then, no new shipments have reached Bangladesh.

Tensions surrounding Iran and conflicts with the U.S. and Israel in the Hormuz Strait have disrupted the movement of oil tankers. However, three oil tankers are currently en route to the country, which typically take 12–15 days to arrive.

The government and related agencies are actively addressing this complex situation. While temporary, this shortage could significantly impact the country’s energy sector, particularly industrial production and electricity generation.