Crude Oil Shortage Threatens Eastern Refinery Shutdown in Bangladesh

Eastern Refinery Limited (ERL), the sole state-owned oil refinery in Bangladesh, is facing a potential temporary shutdown due to critically low crude oil reserves. The shortage is driven by disruptions in regional supply lines linked to the crisis in the Strait of Hormuz.

As of March 30, 2026, the refinery held approximately 30,500 tonnes of usable crude oil. According to multiple officials, this volume was enough to sustain operations for about six days if operating at the facility’s installed capacity of 4,500 tonnes per day.

A senior ERL official stated that with the current stock, operations could continue until April 6, 2026. Following that date, adjustments to operations may be necessary depending on when new shipments arrive.

In an effort to stretch existing reserves, ERL has already reduced its throughput to approximately 3,700 tonnes per day, falling below its installed capacity.

Supply Constraints and Technical Limitations

The refinery is limited by its technical ability to process only specific types of crude. Monir Hossain Chowdhury, a spokesperson for the Energy Division, stated that ERL is unable to process any crude other than Murban and Arabian Light Crude, which are primarily sourced from the United Arab Emirates and Saudi Arabia.

Because Notice no alternative crude sources available for the facility, the Energy Division is currently exploring alternatives in refined oil to mitigate the pressure.

The timeline for replenishment remains uncertain. Authorities have indicated that the earliest crude oil supply is due in at least 10 days.

Regional Energy Crisis

The situation at Eastern Refinery Limited is part of a wider energy instability affecting Asian countries. Regional tensions and the closure of critical shipping routes, particularly in the Strait of Hormuz, have disrupted oil imports and caused global oil prices to soar.

The disruption of these shipping routes has led several Asian nations to call for economic belt-tightening as they navigate the threat of a global energy collapse.

The Bangladesh Petroleum Corporation (BPC) is currently facing difficulties in importing both refined and crude oils amid these geopolitical pressures.